To divorce, couples need to negotiate terms for splitting up their shared property and any joint financial obligations. Property division can be a simple process in cases where spouses have a prenuptial agreement in place. Otherwise, they must disclose their assets and debts to one another and negotiate until they reach a settlement.
If they cannot settle, then they must litigate these matters. Some people try to alter the likely outcome of the property division process by hiding assets and marital income. How does the possibility of hidden assets and income affect the divorce process?
More support may be necessary
In cases where one spouse has reason to believe that the other has lied about the extent of their holdings or the value of marital property, the other spouse may need guidance from a financial professional to locate hidden assets or income. The spouse who suspects financial misconduct may also need the assistance of a forensic accountant to trace income, locate hidden accounts and validate the origins of various resources.
The court may need to consider misconduct
In most cases, judges hearing equitable property division litigation do not consider financial misconduct when deciding what arrangements are fair given the spouses’ circumstances. However, proof of financial misconduct during the divorce could warrant special consideration, and judges may alter their final decrees when presented with evidence of hidden assets.
Discussing the possibility of hidden assets with an experienced legal professional can help people take the right steps in the early stages of a divorce. Spouses who locate and properly value hidden assets or income are in the best possible position to secure a fair divorce settlement.
