When dealing with a high-asset divorce, uncovering hidden assets can be one of the most challenging aspects. If one spouse tries to conceal or hide assets to avoid a fair division, the entire process becomes more complicated. Understanding how courts handle these situations ensures both parties are treated fairly under Michigan law.
What are hidden assets in divorce?
Hidden assets refer to financial resources that one spouse tries to conceal, hoping the court won’t find them. These can include undisclosed bank accounts, hidden cash, unreported income, or assets transferred to others before or during the divorce. In high-asset divorces, these actions often involve complex financial instruments or offshore accounts.
How do Michigan courts discover hidden assets?
Michigan courts take hidden assets seriously. If you suspect your spouse is hiding assets, the court can order a forensic accountant to review financial records. These experts trace hidden funds, look for discrepancies in reported income, and identify signs of asset concealment. Courts may also require both parties to disclose all assets and liabilities, and failing to do so can result in severe consequences.
Legal consequences of hiding assets
Courts impose penalties when one party intentionally hides assets. If the court proves a spouse concealed assets, it may reduce the portion of the marital estate awarded to that spouse. In some cases, the court might award a larger share of the assets to the other spouse to correct the unfair advantage. Courts can also take legal action, including contempt of court charges.
How can hidden assets affect your divorce outcome?
Finding hidden assets can significantly change the outcome of your divorce. If a spouse gets caught hiding assets, it can lead to an unfair property division, influencing the final settlement. In high-asset divorces, transparency is especially important, as the stakes are much higher. Investigating hidden assets early can protect your financial interests and result in a fairer division of assets.
