People preparing for divorce and often want to focus on the future. They need to envision a better life after the divorce to get through the tumultuous times ahead. To create reasonable expectations, they typically have to know what might happen during the divorce process.
That includes having a realistic idea about property division matters. Particularly in scenarios where couples have enjoyed a comfortable standard of living during the marriage and have valuable resources, the possibility of hidden assets could become a serious concern.
When one spouse believes that the other may try to hide money, investments or physical property, they may worry about an unfair property division outcome. How can people track down hidden assets during divorce proceedings?
By following formal procedures
The biggest mistake a spouse could make when they believe their spouse may have hidden assets is to agree to a settlement outside of court. Those who reach an uncontested property division agreement may have very limited options for recourse if they discover that their spouse had hidden assets from them previously. Going through the formal discovery process makes it easier to demand accountability if it turns out that one spouse lied to the other and to the courts about their income or resources.
By reviewing records thoroughly
After receiving discovery documents related to personal holdings, income and marital dots, going over those records extensively is typically necessary. In some cases, there may be obvious discrepancies between the disclosures made by a spouse and the actual financial circumstances of the marriage. Other times, the records may be so complex that individuals struggle to make sense of them. Hiring a forensic accountant can be costly but might be a smart investment when there is reason to suspect hidden assets.
Forensic accountants can trace income and find warning signs of diverted income or hidden assets. Their assistance can be crucial in making sense of a complex financial situation. In scenarios where spouses identify hidden assets, they can seek accountability through the court system. Judges may penalize those who attempt to hide assets or may at least include those hidden assets in the pool of marital property that is subject to division.
Having a plan when preparing for a complex, potentially contentious divorce can help people push for the best outcome possible.