Dishonest Financial Tactics During Divorce and How to Respond

 Posted on June 03, 2022 in Divorce

Although marriage is about much more than money, financial issues are often the crux of a divorce case. Property division, child support, and spousal maintenance all hinge upon the spouses’ financial circumstances. Some spouses try to sway the divorce outcome in their favor by manipulating financial information, hiding income, undervaluing assets, or using other unscrupulous tactics. If you are getting divorced, it is important to be aware of these tactics so you can protect your right to a fair divorce outcome.

Failure to Disclose Assets

Divorcing spouses are required to fill out financial disclosures listing their property and debts. Real estate properties, vehicles, businesses, professional practices, furniture, and other assets should be listed, valued, and categorized as either marital or non-marital property. However, some spouses fail to disclose all of their assets in an attempt to protect them from division during divorce. They may “forget” to report money in an offshore account or transfer assets to friends or family. Some divorcing spouses literally hide cash or valuables like jewelry to prevent the assets from impacting the divorce.

Undervaluing Property

The value of the spouses’ marital and non-marital property is likely to influence the divorce significantly. Some spouses report an asset’s value as much lower than it actually is. Art, antiques, collectibles, and other hard-to-value assets may be intentionally undervalued during a divorce. Business owners may falsely claim that their business is worth much less than it actually is to avoid accounting for the business’s true value during a divorce.

Underreporting Income

Divorcing spouses’ net incomes are used to determine child support and spousal support obligations. In an effort to pay less or receive more in child support or spousal support, a spouse may lie about how much money he or she makes. Spouses who are self-employed or those who receive cash payments “under the table” can more easily fabricate income information. However, there are ways to uncover this type of financial deception regardless of the spouse’s employment situation.

What to Do If Your Spouse is Lying About Finances

If you are getting divorced and your spouse is lying about his or her income, hiding assets, undervaluing property, or otherwise being dishonest about finances, contact a divorce lawyer for help. An experienced divorce lawyer can use discovery tools, subpoenas, forensic accounting or other means of revealing financial dishonesty so your divorce outcome is based on accurate financial information.

Contact a Kane County Divorce Lawyer

At Goostree Law Group, we understand that financial deception can take many forms and we are committed to helping divorcing spouses uncover the truth. Call our St. Charles divorce attorneys at 630-584-4800 to learn how we can help you.

Source:

https://www.forbes.com/sites/jefflanders/2012/11/14/what-are-the-consequences-of-hiding-assets-during-divorce/