In a Michigan divorce, the process of equitable distribution is used to ensure that marital assets and liabilities are divided fairly between spouses. However, problems can arise when one spouse attempts to secure a better financial settlement by hiding assets that should rightfully be included in the division. These actions undermine the process and can have serious legal and financial repercussions.
Hiding assets in a divorce can take many forms, such as:
- Accumulating and stashing cash in secret locations.
- Asking an employer to delay bonuses, raises or stock options until after the divorce is finalized
- Intentionally obtaining a low appraisal for valuable items like real estate, businesses or artwork
- Creating loans to friends or family members that are arranged to be repaid after the divorce
- Gifting money or assets to friends or relatives under an agreement to have them returned later
- Opening undisclosed bank accounts or investment accounts
- Moving assets to foreign bank accounts or properties abroad
- Placing funds in a child’s custodial account with the intent of retrieving them after the divorce
- A business owner paying nonexistent employees or overpaying taxes to receive a refund later
Any of these actions can constitute fraud on the court, which relies on both parties to fully and truthfully disclose all assets and liabilities. If the deception is discovered, even after the divorce is finalized, the court can reopen the judgment and impose penalties on the offending party. These may include sanctions, the award of a greater share of assets to the innocent spouse or a finding of contempt.
If you suspect your spouse is hiding assets, it is advisable to seek help from an experienced divorce attorney to protect your property interests. A skilled lawyer can employ several strategies, such as:
- Conducting thorough discovery — The court discovery process allows spouses to request detailed financial disclosures under oath. Attorneys know how to craft discovery requests that compel the other spouse to produce information about all assets, including those that may be concealed. They can identify evasive answers or document gaps.
- Engaging forensic experts — In complicated cases, attorneys may work with forensic accountants skilled in uncovering hidden assets through financial analysis, tracing funds through complex transactions, valuing businesses and examining tax returns for inconsistencies.
- Leveraging legal remedies — Attorneys can seek court intervention if a spouse is uncooperative, including motions to compel disclosure or, in extreme cases, contempt proceedings.
- Negotiating and litigating effectively — With experience in settlement negotiations and litigation, attorneys are equipped to advocate for fair distribution, which can include unraveling attempts at deception.
Dawson Family Law, PLCC in Troy, Michigan has wide experience in divorce cases involving spouses who attempt to hide assets. Please call 586-514-0084 or contact me online to schedule a free initial consultation.
