Divorce can be a messy affair, especially when dealing with high-net-worth individuals. While amicable splits do happen, things often end on a bad term these days. In many instances, we see spouses hiding assets before divorce proceedings to avoid paying out their fair share.
But that doesn’t make it any less illegal. And if you think your soon-to-be ex is using underhanded tactics to hide away his fortune, you’re not alone. A survey by NEFE shows that about one-third of US couples with combined assets have been less than transparent about their money. Don’t worry; we’ve got your back.
At Purposeful Wealth Advisor, we make sure you get what you’re owed during this troublesome affair.
Here’s a complete guide on what you should do to secure assets that are rightfully yours during a divorce process.
- Hire Legal Counsel:
If you think your spouse is hiding assets, the first thing you should do is assemble a top-notch legal team. Your attorneys will help guide you through the intricacies of asset identification and navigate the legal maze to obtain all relevant financial information.
- Obtain Full Financial Disclosure:
You must demand a comprehensive financial disclosure from both parties, including a detailed breakdown of bank accounts, tax returns, investment portfolios, etc.
- Review Prenuptial and Postnuptial Agreements:
If you had a prenuptial or postnuptial agreement with your spouse, it’s time to review them with a fine-toothed comb. These documents usually highlight asset distribution. But be wary of any signs of fraud or information discrepancies that might unfairly skew the terms against you.
- Hire Forensic Accounting Experts:
Forensic accountants are the financial detectives of the divorce world. They can help you uncover financial irregularities by analyzing financial statements and transaction records to identify hidden assets.
- Asset Valuation:
Collaborate with appraisers and investment analysts to accurately value assets, especially unique or valuable items like art collections, luxury goods, or unconventional investments. Accurate valuation is the cornerstone of a fair asset distribution, and a financial advisor can help make this easier.
- Work with Private Investigators:
Consider enlisting the services of private investigators to gather information that may be inaccessible through legal channels. With their discreet surveillance techniques, background checks, and investigative prowess, private investigators can uncover hidden assets and provide valuable insights.
- Review Tax Returns:
Analyzing tax returns meticulously often reveals financial discrepancies or omissions that hint at concealed assets. High net-worth individuals may attempt to manipulate income reporting or engage in complex tax schemes to obscure their true financial picture.
- Go Through Business Records:
If one or both spouses own businesses, examine the business records carefully. Concealing assets through businesses is a common tactic. Look for irregularities in financial statements, transactions between related entities, or undervaluation of business assets.
- Analyze International Assets:
If there is a possibility of offshore holdings, collaborate with professionals who are well-versed in international finance laws. This may involve partnering with legal experts in other jurisdictions to trace and value assets held abroad.
- Obtain Court Orders and Subpoenas:
When necessary, don’t hesitate to obtain court orders and subpoenas to compel the disclosure of information related to assets. Legal authorities can provide the necessary tools to conduct a thorough investigation, and failure to comply with such orders may have legal consequences.
- Stay Informed:
The landscape of financial technology and legal strategies for hiding assets is constantly evolving. Stay informed about the latest developments and adapt your approach to the changing tactics employed by high-net-worth individuals.
Work with Us
Financial deception during divorce proceedings is not only unethical but also illegal, and it can have severe consequences for the offending party.
At Purposeful Wealth Advisor, we help you in making sure you get assets that are rightfully yours as per divorce agreements.
So book a call with us, and let us guide you through this legal maze.
Opinions expressed are those of the author and are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
