Hidden Assets in Divorce

Hiding assets is a common tactic spouses employ to get more than their share in divorce settlements.

In addition to the many emotional aspects of filing for a divorce, there is also the harmful effect it can have on your finances. Getting the maximum amount of any marital property and assets you are entitled to in your divorce settlement is crucial to your recovery and in building a new life, which is why having a thorough inventory of these assets is so important in your divorce case. Unfortunately, some spouses may attempt to hide money or other types of property to avoid having to split it in divorce proceedings. In addition to actions your divorce attorney takes on your behalf, there are some steps you can take to protect yourself.

Why Your Spouse May Try to Hide Assets

When filing for a divorce under the Tennessee Statutes, all property and assets earned, acquired, or otherwise accumulated during your marriage are divided on an equitable, though not necessarily even, basis. Factors that are likely to be a consideration in marital property negotiations and in any orders eventually issued by a judge include:

• The length of the marriage
• Each person’s individual income and earning potential;
• Contributions each spouse made during their marriage;
• Other factors such as marital misconduct, a gambling or drinking problem which caused your spouse to waste money, or whether you sacrificed your own career for the sake of your spouse or your children.

To avoid having to negotiate over personal property, income, or funds in financial accounts, your spouse may attempt to hide these assets. This may be done out of spite or simply to get more than their fair share in any eventual property settlements.

Uncovering Hidden Assets

Your divorce attorney can take actions in filing your divorce that can protect you and prevent your spouse from taking personal property or depleting funds in bank accounts. However, there are also some important steps you can take now to protect yourself. Live About suggests the following tips for uncovering hidden assets in your divorce:

• Get copies of your latest tax returns: These can often reveal hidden income, bonuses, business interests, and earnings on investments;
• Get recent statements from all financial accounts: Make sure to get the latest bank, investment, and retirement account balances and look through statements for any unusual or unfamiliar withdrawals or canceled checks;
• Do a tax search: By doing an online search or visiting the local tax assessors office, you can look up any property taxes your spouse pays on items titled in in his or her name alone, along with any recent sales or transfers of ownership.
• Consider friends and relatives: To get rid of assets, a spouse may choose to temporarily transfer property and assets to relatives or friends until after the divorce is final.

Our Manchester Divorce Attorneys are Here to Help

While uncovering hidden assets can prove challenging, Law Offices of Burch, Morrison, & Stewart is here to help. To request a confidential consultation about your situation and the steps you can take to protect yourself, contact our Manchester divorce attorneys today.