There is no doubt that divorce can be a tense undertaking. One of the issues most divorcing couples fight over is property division.
Michigan is an equitable distribution state, meaning that should the marriage end in a divorce, the marital property should be divided in a fair manner. This often means that the marital property is subjected to a 50-50 split. To ensure that this is realized, it is important that the divorcing couple makes full disclosure of what they own.
But what happens when one party attempts to hide marital property?
During the divorce process, both parties are required by law to make full disclosure of the marital property. This refers to assets and debts incurred during the marriage. Based on this, the family court determines who gets what during the divorce settlement. Keeping some assets from the eyes of the court can gravely hurt your property division case. Besides the contempt of court charges, you might end up losing those recovered assets to the other spouse.
How couples hide marital property during the divorce
Divorcing couples use a number of techniques to hide marital assets. Here are some:
- Funds transfer from personal or family accounts to third parties such as friends or family members
- Deceptive purchase of items such as antiques with the intention of selling them off after the divorce to recover the money
- Falsifying debts in order to make payments that they will later reclaim after the divorce
- Physically hiding money in safe boxes at undisclosed locations
- Channeling the funds through a business entity by making purchases that they will later reclaim
Divorce can bring out the ugly side of people. One way this happens is by hiding marital assets. If you suspect your spouse is attempting to hide marital assets during the divorce process, it is important that you take appropriate steps to safeguard your legal rights.