Attorney
Hidden assets in divorce cases can significantly complicate the already emotionally charged and complex process of marital dissolution. Individuals may attempt to conceal assets to minimize the final divorce settlement or to gain an unfair advantage in divorce proceedings. Detecting hidden assets can be critical to ensure a fair and equitable distribution of marital property. Let’s further explore hidden assets in divorce, including how you can detect such hidden assets and the legal remedies that may be available to you.
Hidden Assets in Divorce: Detection and Legal Remedies
There are several common methods employed to hide assets prior to divorce proceedings. One method is to underreport income. Individuals may manipulate financial statements, tax returns, or business records to present a lower income than the actual amount. This can impact alimony and child support calculations as well as the division of assets. To identify such discrepancies, there must be a thorough examination of financial records, including bank statements, tax returns, and business financial statements.
Another common way of concealing assets is the undervaluation of property. Individuals may purposefully underestimate the value of real estate, businesses, or other valuable assets to diminish their share in the division of property. Valuation experts and forensic accountants can be employed to assess the true value of assets, helping to ensure an accurate representation during divorce proceedings.
In some cases, an individual may transfer assets to friends, family members, or business associates with the intent of reclaiming them post-divorce. These transfers may be disguised as loans or gifts. Uncovering such transactions may involve examining bank records, property transfers, and other financial documents. An experienced forensic accountant can be instrumental in tracing the movement of assets and revealing attempts to hide them.
Cryptocurrencies and offshore accounts can provide additional avenues for hiding assets. The decentralized and often anonymous nature of cryptocurrencies can make them challenging to trace. Offshore accounts in jurisdictions with strict privacy laws may be used to stash funds away from the scrutiny of the divorce process. Legal professionals often collaborate with forensic experts specializing in digital assets and offshore financial structures to identify and trace such hidden resources.
Legal remedies are available to address the issue of hidden assets in divorce proceedings. Courts do not take attempts to deceive or defraud a spouse lightly. Discovery procedures allow parties in a divorce to request information from each other, compelling the disclosure of financial documents, bank statements, tax returns, and other relevant information. Failure to comply with discovery requests can result in legal consequences. In some jurisdictions, the court may impose penalties on individuals found to have hidden assets. This can include:
- Adjusting the division of assets in favor of the innocent party
- Awarding additional financial support
- Holding the offending party in contempt of court
Family Law Attorneys
Detecting and addressing hidden assets in divorce cases is crucial to ensure a fair and just distribution of marital property, among properly resolving other key issues incident to divorce. Be sure you are taking the right steps to properly detect assets that may have been concealed. Talk to the dedicated family law team at Navarrete & Schwartz. We are proud to serve the residents of Midland, Texas. Contact us today.