It often takes months for spouses to address the various issues that arise during divorce proceedings. People have to make decisions about property division and financial support. If they have minor children together, they may need to negotiate a parenting plan.
If they cannot cooperate with one another, then the case may go to trial. Particularly when spouses have acquired valuable property during a marriage, their shared resources could inspire financial misconduct. Sometimes, one spouse attempts to hide valuable shared assets from the other spouse and the family courts during the divorce process.
What are some of the ways that people identify hidden property and hold their spouses accountable for financial misconduct during a divorce?
Working with a forensic accountant
As the marital estate becomes larger and more complex, independently reviewing the marital estate becomes more challenging. Many people do not have the financial knowledge necessary to make sense of complex household financial records. Forensic accountants specialize in analyzing financial records. They can find discrepancies, inappropriate transfers and undisclosed assets. The information that they gather can play a key role in helping spouses locate and value hidden assets during divorce proceedings.
Demanding formal discovery
People who hide assets often get away with it because they convince their spouses to settle. They misrepresent their circumstances and then propose a property division settlement that favors them heavily. People may have spotted warning signs of hidden assets or recognize that there is opportunity in the form of a complex marital estate combined with the motivation of a contentious divorce. Requesting formal disclosure may provide an opportunity for one spouse to hold the other accountable if they misrepresent their resources and financial obligations.
Itemizing personal property
Some people hide digital assets or secret bank accounts. Others intentionally avoid disclosing the totality of their personal resources or intentionally undervalue those assets. Perhaps one spouse has acquired a significant collection of fine jewelry throughout the marriage. While the other spouse may not have any interest in owning the jewelry, they may need to account for what it is worth. People may also need to carefully itemize wardrobes, household contents and personal collections.
Resources including antiques, classic cars, art and fine wine can be worth far more than people might realize initially. Individuals who take the time to identify all marital property and to have it properly valued are less likely to fall victim to manipulative attempts to underestimate the value of marital resources.
Locating and valuing hidden assets can help people ensure that they receive a fair property division outcome in a pending divorce. Spouses who worry about the possibility of financial misconduct may need assistance as they begin strategizing for their upcoming divorce proceedings, and that’s okay.
