Disclaimer: This article aims to provide educational information on what to do if your ex is hiding money. It is not intended to serve as legal advice. Consult with a lawyer and exercise your discretion before taking action based on the information provided in the blog.
During your separation or divorce, both sides are required to disclose their assets and liabilities. This can be quite lengthy and includes providing at minimum three years’ worth of tax returns and notices of assessment as well as all documentation to substantiate your assets and debts. This disclosure is used to determine child support, spousal support, equalization, and more.
While hiding assets or money during a separation or divorce is unlawful, it does happen. If you think that your ex-spouse has incorrectly completed their financial disclosure, what can you do?
In this article, we will explore this delicate subject and provide guidance if you are facing this issue. Of course, each situation is unique, and you will want to discuss your circumstances with our team.
The Importance of Full Disclosure During Separation and Divorce Proceedings
In any divorce, the court relies on the principle of full disclosure to ensure a fair and equitable distribution of assets. Full disclosure means that both parties are required to provide complete and honest information about their financial situation, including all assets, debts, income, and expenses. This information is crucial for the court to make informed decisions regarding property division, spousal support, and child support.
Concealing assets and/or income during a separation or divorce undermines the integrity of the entire process. By hiding assets, one spouse gains an unfair advantage and manipulates the settlement. This not only harms the other party but also affects the well-being of any children involved.
Therefore, when making your financial disclosure, take proactive steps to provide full and accurate financial information. This includes disclosing all assets, debts, income, and expenses. You must gather and organize all relevant financial documents, such as bank statements, tax returns, investment portfolios, property records, etc.
But what if you think that your ex-spouse has been less than forthcoming? This matter is serious, so proceed with caution. Accusing them of hiding assets or money without having all of the facts can create tension and impact your ability to come to an amicable settlement.
Ways to uncover hidden assets
Look for red flags that may suggest they are hiding assets. Common indicators include paying a “loan” to a friend or relative, a suddenly enhanced lifestyle, and opening accounts in your children’s names.
Uncovering hidden assets during a divorce can be challenging, but there are several strategies that can help. Hiring a forensic accountant or business valuator can be helpful in identifying and valuing hidden assets.
Business valuators can play a vital role in uncovering hidden assets during a divorce. These professionals have specialized knowledge and expertise in financial investigations and can identify complex financial arrangements, undisclosed income, and hidden assets. They employ various techniques to uncover the truth, such as data analysis, tracing funds, and conducting interviews.
In some cases, we may request a court order for questioning. That way, we can conduct thorough questioning under oath, compelling your ex-spouse to reveal any hidden assets or at least obtain information that would be helpful in tracing any such assets.
Risks and consequences of concealing assets
Concealing assets during a divorce is risky and can have serious consequences. If discovered, the party that concealed assets may face legal penalties. The court may order the guilty party to pay your legal fees and, if the hidden assets make a material difference, will adjust the settlement to compensate for the hidden assets.
Navigating your divorce with Plat Simionati LLP
Navigating your divorce can be complex. However, our team at Plat Simionati LLP is ready to guide you through the intricacies. Our seasoned professionals offer the expertise needed to ensure your divorce is handled diligently and justly. Reach out to us today for personalized assistance.