High-asset divorces often involve complex financial portfolios, making property division challenging. One common issue is the discovery of hidden assets. Whether intentionally concealed or inadvertently overlooked, hidden assets can significantly impact the outcome of a divorce settlement.
What are the potential penalties for hiding assets?
When spouses hide assets during a divorce, they may face serious legal consequences. Michigan law mandates full financial disclosure from both parties, and failure to comply may result in various penalties. Here are some of the legal repercussions for the spouse who hid assets:
- Contempt of court
- Sanctions and penalties
- Fraud claims
The court may also assume that the hidden assets were substantial, potentially awarding the innocent spouse a larger share of the marital estate. These consequences aim to ensure fairness and transparency in the division of marital assets.
Will you receive all the hidden assets?
After uncovering hidden assets, the court will reassess the property division to ensure an equitable distribution. Here is what typically happens:
- Full disclosure: Both parties must provide an accurate account of all assets, including the newly discovered ones.
- Forensic accounting: Forensic accountants may be engaged to trace the hidden assets and determine their value, ensuring an accurate assessment of the marital estate.
- Reevaluation of settlement: The court will revisit the original settlement terms, adjusting the division of assets to reflect the actual value of the marital estate.
- Compensation: The innocent spouse may receive a larger portion of the assets to compensate for the deceit and imbalance caused by the hidden assets.
In high-asset divorces, discovering hidden assets can dramatically alter the settlement outcome.
Reaching a fair settlement
Working with forensic accountants is crucial to ensuring that all assets are identified and fairly divided. If you suspect hidden assets in your divorce, you may want to seek help from a legal professional to explore your options and protect your financial interests.