Divorce is complex and emotionally taxing, especially when it comes to the equitable division of assets. Michigan law, like most states, requires both parties disclose their assets during a divorce. Unfortunately, it is not uncommon for some to attempt to hide assets to sway the settlement in their favor. It is important that those going through a divorce understand how to identify and claim all rightful assets to better ensure they get a fair settlement agreement when they finalize the divorce.
Common tactics for hiding assets
Recognizing how some may attempt to hide assets is the first step towards better ensuring a fair division. Common strategies can include:
· Transferring assets to third parties: Some may transfer money or property to friends or family members to temporarily remove them from the marital estate.
· Undervaluing or omitting assets: Underreporting the value of business interests or not disclosing certain assets are typical ways to misrepresent the asset pool.
· Using complex financial instruments: It is easy to overlook or undervalue investments in art, antiques, or cryptocurrencies without careful scrutiny.
The rise of digital assets like cryptocurrency has introduced new complexities in divorce settlements. Courts are more aware of cryptocurrency as a tool for hiding assets because of its relative anonymity and ease of transfer and are taking steps to crackdown on efforts to use these tools to hide assets. Those who are familiar with this potential tactic can take steps to help better ensure these assets are found — such as a subpoena a crypto exchange, hard drive, or computer system. As such, it is important to keep this potential form or currency in mind when reviewing assets. This is especially true in high-worth cases.
Strategies to uncover hidden assets
Parties in a divorce can take the following steps to help better ensure they find all assets:
· Hire a financial professional: A forensic accountant can uncover discrepancies in financial statements and track unusual transactions.
· Review tax returns and financial statements: These documents can reveal inconsistencies or clues about hidden assets.
· Monitor online activity: Since cryptocurrencies can be bought and sold through online exchanges, examining digital footprints might provide evidence of undisclosed transactions.
Although the law requires financial transparency, there are always some who believe they can game the system. By staying vigilant and employing strategic methods to uncover all assets, individuals can help ensure that they receive their fair share of the marital estate.