When a couple gets a divorce, it is financially draining. Property division is a crucial part of the divorce process, as well as assigning things like spousal maintenance or child support. This is in addition to the process itself being costly. Spouses must share financial information during divorce discovery so property division and support are decided fairly. If you suspect that your spouse is hiding assets during the divorce process, a Columbia divorce attorney can help.
There are many reasons a spouse may hide assets. They may be worried about their financial security, or they may have personal investment in retaining specific assets. A spouse may also hide assets out of spite. When a spouse hides separate or marital assets, it affects how assets are divided and can mean that you receive much less than your fair share. When discovery is court-ordered, there are methods your attorney can use to find hidden assets.
How Can Assets Be Concealed?
There are several ways a spouse could conceal assets before and during divorce proceedings, including:
- Moving assets to other accounts, trusts, family members, or friends
- Cash transactions and withdrawals
- False debts and gifts, especially to friends or family who can pay back those assets later
- Offshore bank accounts to avoid funds being found
- Incorrectly appraising high-value personal property, businesses, or real estate
- Paying the IRS more than it is owed to lower current assets and receive a high tax refund at a later date
- Putting off employment raises, benefits, bonuses, or income until after the divorce
- Underreporting income or claiming excess deductions
- Moving marital funds to a separate retirement or bank account
Spouses are required to be open and honest with each other during divorce discovery. A spouse who conceals assets is violating the other spouse’s rights. In formal discovery, a spouse who hides assets can be held in contempt of court.
Tools Used in Formal Divorce Discovery
If you believe your spouse is hiding assets in the divorce process, formal discovery is crucial. Formal discovery is required if you and your spouse are getting a contested divorce, meaning you do not agree on the basic elements of the separation agreement.
However, if you and your spouse are getting an uncontested divorce, you can choose between a formal and informal divorce. Formal discovery enables your attorney to use certain tools to uncover hidden assets. If you do not have access to all financial documents, or your spouse is not being honest about all financial information, forma discovery is likely necessary. The tools available in formal discovery in Missouri include:
- Written Interrogatories: This is the process of asking your spouse questions in a document that they must write answers to under oath. Interrogatories can request information about accounts, assets, transactions, and other financial information.
- Request for Product of Documents: This requires your spouse and their lawyer to request a specific document that you ask for, typically a financial document to back up information already provided. The request must be in good faith and cannot be a request to produce a document that does not exist or is impossible to find. Documents could include asset statements, tax returns, and account records.
- Requests for Admission: These are requests for confirmation or denial of short statements or questions. This can make certain facts more clear for an attorney, especially related to asset ownership.
- Deposition Testimonies: Deposition testimonies may be written or spoken testimony. Oral testimony is often in-person or over a video call. Your attorney will ask your spouse and other relevant individuals questions under oath and use these questions to find out more in-depth information and potential inconsistencies in the case.
Not all of these discovery tools are needed in every formal discovery. It is helpful to discuss the situation with your attorney when you suspect hidden assets. An attorney can devise a strategy for uncovering assets in your unique circumstances. An attorney can also use the information you provide to advocate for the court to allow formal discovery tools.
FAQs
Q: How Can You Find Hidden Money in a Divorce?
A: You could find hidden money or assets in a divorce by reviewing the financial accounts and information that you legally have access to. This includes marital assets and accounts as well as separate accounts. Documents for bank accounts, tax returns, and other account statements may show financial information that doesn’t add up.
Some indicators that a spouse is hiding assets could include large transfers into a business, withdrawals from marital accounts, or suddenly giving expensive gifts to family members.
Q: What Is Discovery in a Missouri Divorce?
A: Discovery in a Missouri divorce is the process where spouses exchange important financial information, such as their assets, debts, and income. This information is important for each spouse and their attorney to determine a fair division of assets and how spousal or child support should be assigned.
Discovery can be formal or informal. Informal discovery can happen without court interference but is only allowed in an uncontested divorce. When a divorce is contested, formal, court-ordered discovery is required.
Q: Is Discovery Worth It in a Divorce?
A: Discovery is a crucial part of divorce, and it cannot be avoided. Couples in an uncontested divorce, however, can choose between informal and formal discovery. The formal discovery process can be more complex and stressful. It may not be worth it if spouses are amicable. If you suspect your spouse is hiding assets, formal discovery may be necessary. There are tools that can be used in formal discovery to find these assets and ensure the divorce is fair.
Q: What Are Two Disadvantages of Discovery?
A: Two disadvantages of formal discovery in a divorce may be:
- Court-ordered discovery is a lengthier process and can make the divorce more expensive.
- The process can be used by spouses to make a divorce take longer on purpose by making numerous document requests that must be found before the divorce can proceed.
Despite these disadvantages, there are many situations where formal discovery is important, such as when couples have complex assets or there are suspicions of hidden assets.
Protecting Your Financial Interests in Divorce
It can be complicated to uncover hidden assets in a divorce, but a skilled divorce attorney can make it much easier. Contact Stange Law Firm in Columbia today.
