Don’t let hidden assets complicate your divorce
A key part of the divorce procedure involves dividing property, finances and debt obligations. In Colorado, the courts adopt a process of equitable distribution. This means that property and other aspects related to the marriage will be divided in a manner that is fair to all parties.
This system relies upon both spouses being fully open and transparent about their financial situation. Occasionally, a spouse may feel aggrieved about the equitable distribution process. They may think that you are entitled to nothing. To keep you from obtaining the settlement you deserve, they might even attempt to hide assets. What are the common signs that assets are being hidden and what can be done about it?
Claims that finances have taken a turn for the worse
You may have lived a comfortable life throughout your marriage. Now that the legal process of divorce has commenced, your spouse might start complaining about falling on hard times financially. They may bring up the tough economy, a downturn in business sales or a reduction in their salary. While this may be true, the timing could also suggest that they are attempting to deceive you and the courts about their financial well-being.
A lifestyle that doesn’t match these claims
If your spouse truly is in bad shape financially, then you wouldn’t expect them to be planning luxurious vacations or making extravagant purchases. If their income claims suggest low amounts, then how are they paying for their lifestyle? If there are clear discrepancies between claimed income and perceived lifestyle, then something is likely amiss.
These are just some clues that your spouse may be trying to hide assets. You really need to stay on top of their financial situation during the divorce process. This will help you to achieve the settlement that you’re entitled to. You should also always keep your legal rights in mind.