There are many reasons spouses may hide assets during the divorce process, including out of spite, due to a personal connection with the assets, or out of concern for financial instability. If you believe your spouse is hiding assets, you need a St. Louis divorce attorney to help you through the process of formal divorce discovery.
Hidden assets can substantially affect the result of a divorce if they are not uncovered, leaving one spouse in a much worse financial situation. Informal discovery may not be sufficient enough to find these assets, but formal discovery has the tools needed to find what a spouse may be hiding. If hidden assets are discovered, there can be criminal and civil consequences for the spouse who hid them.
How Hidden Assets Impact Property Division
Division of property is an essential aspect of the divorce process. When the court is responsible for the division of your marital assets, it will divide the assets based on what it considers to be equitable. While this may end up being an equal split, it often is not. Couples can also determine how to split their marital assets outside of court, which puts the decisions in their control and can save time and money; however, the agreement must still be approved by the court.
The court will review how it would have divided the assets in a fair and equitable manner to determine if the agreement reached by spouses is fair. Whether the court decides division or not, it will consider the following aspects when dividing property:
- Each spouse’s economic circumstances after the division of property
- Each spouse’s contributions to marital property, including homemaking
- The value of each spouse’s separate property
- Each spouse’s conduct during their marriage
- Custodial arrangements for children
- The importance of providing the family home to the primary custodial parent
Because an equitable division of marital assets is partially determined by the value of separate assets and each spouse’s economic situation after property is divided, hidden assets can change this outcome significantly.
When a spouse hides separate assets, the court may believe they are in need of additional support in the form of additional marital assets. When a spouse hides marital assets, these assets will not be considered in the fair division, and the other spouse will end up with less than what is fair. In order for property division to be truly fair, all separate and marital property must be accounted for and fairly valued.
How Hidden Assets Impact Support
Spousal support, also called spousal maintenance, can also be affected when one spouse hides assets. In Missouri, spousal maintenance is only provided in one of the following cases:
- The spouse requesting maintenance does not have sufficient marital and separate property to provide for their basic and reasonable needs.
- The spouse cannot support themselves through their employment or is a primary custodial parent, and circumstances mean that it is not appropriate for them to be employed away from home.
When a spouse hides assets, they may be considered to have insufficient resources and be granted spousal support they do not need. The resources of each party are also considered when determining the amount and duration of spousal maintenance.
Consequences for Hidden Assets
If hidden assets are uncovered during the divorce process, the offending spouse can face numerous consequences. The court may require them to pay the other spouse’s attorney fees and potentially charge the spouse with contempt of court. The court may also award the other spouse with more marital assets or all the assets that were hidden.
FAQs
Q: What Does It Mean to Hide Assets in a Divorce?
A: Hiding assets in a divorce occurs when one or both spouses hide separate or marital assets from the discovery process. They can significantly impact the outcome of the divorce by doing this, leaving the other spouse in greater financial hardship. A spouse may hide assets in many ways, including:
- Withdrawing from marital accounts without reason, especially cash withdrawals
- Hiding assets in a business or the business itself
- Undervaluing high-value assets
- Suddenly paying off debts to unknown individuals
- Giving gifts to family members or friends
- Delaying bonuses from work
Q: How Does Divorce Affect Your Assets?
A: Divorce affects your assets in numerous ways, including:
- Property division: Your marital assets are divided between you and your former spouse, typically equally or equitably, so you may see your marital assets halved.
- Single income: After a divorce, each spouse is limited to their own income instead of a combined marital income.
- Higher expenses: Rather than dividing one bill between two incomes, each spouse is responsible for their own bills.
- Costs of divorce: The expenses of divorce can significantly impact your assets.
- Spousal support: If you are ordered to pay spousal support, this can also lower your assets.
Q: Do Hidden Assets Affect Divorce in Missouri?
A: Yes, hidden assets affect divorce in Missouri. Both property division and spousal support determinations rely on a full understanding of each party’s separate and marital assets. If one spouse hides marital or separate assets, they may be awarded a higher portion of marital assets than they would have been, while the other spouse has substantially less. The assets each spouse claims to have also affect spousal support determinations.
Q: How Do Assets Get Split in a Divorce in Missouri?
A: In a divorce in Missouri, assets are split based on equitable distribution laws. Marital assets are split between spouses equitably, not equally. The court determines a fair division based on factors such as the value of each spouse’s separate property and the contributions of each spouse to the marriage.
If spouses do not want to split assets this way, they can negotiate their divorce out of court. As long as the division of property is not unreasonable to either spouse, the court will likely approve it.
Beginning the Process of Formal Discovery in Your Divorce
Court-ordered formal discovery is the process of spouses exchanging financial information, with tools like interrogatories and depositions to get specific information from your spouse about their finances. These tools can uncover hidden assets. When you need to protect your financial future, you need experienced attorneys. Contact Stange Law Firm today.
