Undisclosed and hidden assets are more common in divorces where one or both spouses have significant and complex holdings, such as a business or other high-value items. When a spouse hides assets, it impacts the divorce and can cause the other spouse significant financial harm after divorce. Identifying and finding hidden assets is much easier with an experienced Indianapolis divorce attorney guiding you through the discovery process.
Spouses may hide assets for many reasons. They may fear financial instability, wish to hold onto specific assets, or want to get back at a spouse during a contentious divorce. Regardless of the reasoning, it is considered contempt of court to hide assets during formal discovery. It’s important for hidden assets to be disclosed, or they can harm many financial decisions made during separation. The aid of your attorney is essential for finding those assets.
Hidden Assets Lead to Unfair Property Division
If your assets are divided by the court, then they are split according to Indiana’s equitable distribution laws. By this principle, the court presumes that an equal division of marital assets is fair unless factors about the marriage would make a 50-50 split unjust. One of the factors that influences the fair division of assets is the economic circumstances of each spouse, their earnings, and their earning ability.
Indiana defines marital assets differently from other states, as it considers all the assets a couple owns to be marital unless proven otherwise. Even if an asset was obtained prior to a marriage, it is assumed to be marital.
When a spouse hides assets, the court will not take into account those assets when splitting property. Marital property will be split, and the spouse who hid assets will have their share of the assets that the court considered fair, plus their hidden assets. The court may even believe that the individual has limited assets compared to their spouse, awarding them a greater portion of marital assets. This is incredibly unfair to the other spouse and can even put them in severe financial hardship.
Not all spouses separate their assets through a court order. Even when spouses negotiate their separation agreement in divorce mediation, hidden assets still affect the process, as spouses are still trying to determine a fair split of assets. Spouses and their attorneys cannot reach this determination without a complete list of all assets.
The division of marital assets will also impact the awarding of spousal support. Because of this, hidden assets can cause additional financial harm to a spouse by preventing them from receiving the monetary support they need.
What Are My Options for Finding Hidden Assets?
When you first file for divorce, you can file a temporary restraining order on your spouse’s ability to transfer, conceal, or dispose of property. This can help prevent undisclosed assets or asset dissipation while securing temporary financial support for yourself or your children. However, even if you did not file this motion for temporary support, there are still options for uncovering hidden assets.
Information about assets will be exchanged between parties during the discovery process. In an uncontested divorce, spouses have the option to complete an informal discovery without court oversight. If you believe that your spouse is hiding assets, you should not use informal discovery. The formal discovery process, required for all contested divorces, has several tools that are used to uncover hidden assets.
Violating a temporary restraining order on assets or knowingly failing to disclose all asset information during formal discovery each has consequences. This could include fines, jail time, and the court dividing property to favor the spouse who did not conceal assets.
FAQs
Q: What Happens If You Hide Money in a Divorce?
A: If you hide money in a divorce, you could face civil and even criminal penalties. You are required to disclose your assets in a court-ordered discovery. Intentionally hiding property during this process can result in contempt of court proceedings, fines, and/or imprisonment. This is true whether you believe that the assets are yours alone or not. If the court discovers that you are hiding assets, it will likely provide your spouse with more marital assets. It may also affect other areas of divorce.
Q: How Do Assets Get Divided in a Divorce in Indiana?
A: Assets get divided in a divorce in Indiana according to equitable distribution laws, with a legal presumption that a 50-50 split is just and reasonable. However, this presumption can be altered if there are factors that make a 50-50 split unjust. Some of the factors that influence this split include:
- Each spouse’s contributions to acquiring property
- Each spouse’s acquisitions of property before their marriage or from an inheritance
- The economic circumstances of each spouse
- The conduct of each party in terms of asset dissipation
Q: What Is the Dissipation of Assets in a Divorce in Indiana?
A: The dissipation of assets in a divorce in Indiana involves a spouse spending or dispersing their assets to have fewer marital assets that must be split in a divorce. This includes reducing the marital assets that a couple shares by making large purchases, gambling, giving assets to other family members, or engaging in other unhandled tactics to avoid providing as many assets to the other party. It is even more serious when a spouse does this immediately after filing for a divorce or during the divorce proceedings.
Q: How Do I Stash Money Before a Divorce?
A: Stashing money before divorce is not viewed favorably by the divorce court, and doing so may result in criminal charges. Assets, whether they are considered marital assets or separate assets, are influential in many financial determinations during a divorce. By stashing money or assets, you alter the fair considerations that the court makes when dividing property or awarding spousal and child support. If you do not want the court to divide your assets, you and your spouse can create a separation agreement outside of court.
Contact Stange Law Firm in Indianapolis
If you believe that your spouse is purposefully hiding assets as you begin the divorce process, it is crucial to find an experienced and skilled divorce attorney. They can help you begin the process of formal discovery and use tools, such as interrogatories and depositions, to find the assets that have been hidden. Contact the divorce attorneys at Stange Law Firm to see how we can help.
