New York, NY – Because disclosing sources of income and wealth during a divorce can have serious financial consequences, there are often attempts by a spouse to hide these items to obtain a more favorable outcome. However, courts can impose penalties on those who violate a court’s order for a complete disclosure of their finances. Despite the fact that hiding assets at the end of a marriage is technically illegal, it happens fairly often in divorces involving high net worth couples, and special forms of assistance from attorneys near me are required to discover this kind of misconduct.
How hidden assets are uncovered
Locating hidden assets is usually never easy, as the spouse responsible for holding these assets will have already taken significant effort to make sure that they are not found. Professionals who work in this field often need special training in forensic accounting and other disciplines. During their asset search, they may need to review all kinds of documents and evidence including pay statements, bank statements, trust documentation, investment reports, offshore accounts, or even corporations set up by the person. Issues related to property titles can be important as well, because an item that has another person’s name listed on the title cannot be distributed by courts during the course of a divorce case.
The property distribution phase of a divorce
As these items are reviewed, there may also be issues related to determining whether each asset was separate property acquired before the marriage, or if the item is considered marital property and subject to distribution. Obviously, the person hiding their assets has an incentive to give the appearance of as much separate property as possible. The fact that property division tends to be a long and drawn out phase of a divorce can make this process even more complex, as there can be ongoing disputes until property division of all accounts, real property, investments, businesses, and other assets is complete.
Ways that assets can be changed or moved during property division
A person who wants to hide their assets before or during their divorce can use a few common methods. The items can be moved to different jurisdictions within the U.S. or foreign countries. It is also possible to convert cash or investments into things like precious metals or jewelry that can be physically hidden. Giving the money to a family member where the person can still access it if they need to do so is common as well.
Advice from a hidden asset firm
There are law firms that focus on issues related to hidden assets and asset recovery during a divorce case in New York. Anyone who needs additional information about these matters can contact Fred L. Abrams, Attorney at Law.
Firm contact info:
31 West 34th Street, Suite 8133, New York, NY 10001
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