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.