Dividing property during divorce can be complex and hotly contested. By law a spouse has a duty to provide information on all community assets during a divorce. However, some spouses, especially if they are the only income earners, may feel as though they have a "right" to more income or property. In some cases, too, simple greed or vindictiveness may drive a soon-to-be ex-spouse to hide as much as they can during a divorce, creating a better financial situation for themselves at the other's expense.
Knowing all community assets and income makes sure you get a fair share of the community property. This can make you more financially secure after the divorce and ease the transition to a post-divorce lifestyle.
Sooner is Better to Start Documenting Assets and Income
If you have not initiated divorce proceedings yet, but are contemplating divorce, now is a good time to start collecting information on assets. Gather documents such as:
- Bank statements
- Tax returns
- Retirement accounts, such as pension, IRA and 401K statements
- Credit card statements and other debt
- Loan statements, such as auto loans and other personal loans
It can sometimes be easier to gather these documents before a spouse has time to try to hide assets. However, even if you are in the middle of a divorce, it is not too late to gather these documents and establish your spouse's income and assets.
Common Tricks Used to Hide Income
As soon as the word "divorce" enters the conversation, there is a risk a spouse will start hiding assets. It can be especially difficult if your spouse owns his or her own business. Common tricks include:
- Paying a non-existent employee or company, or otherwise hiding assets in his or her business
- Paying a friend, romantic partner or family member for services that never actually happened
- Keeping expensive collections, such as artwork or hobby equipment, that can be easily overlooked by the other spouse, or keeping expensive furniture and property at an office
- Intentionally adding debt, real or otherwise, to show a worse financial situation to avoid paying as much in alimony or child support
Contact a Divorce Attorney
These lists are certainly not exclusive, and if you are contemplating a divorce or suspect your spouse is hiding assets, contact an experienced family law attorney that can help you to document all assets and make sure you get a fair share of the property you deserve.
