Divorce can be challenging, and it becomes more complicated when one spouse hides assets. Understanding your legal rights is crucial if you suspect that your spouse is not being truthful about their financial situation.
Recognizing hidden assets in divorce
A spouse might conceal property, income, or other financial resources to avoid sharing them during the divorce. Signs of hidden assets include unusual bank withdrawals, sudden debts, or secretive financial behavior. Unexplained changes in financial documents may also indicate hidden assets.
Legal obligations for asset disclosure
Both spouses must fully disclose all assets and debts during divorce proceedings. The law requires honesty to ensure a fair division of property. Indiana follows the “equitable distribution” model, meaning the court divides marital property fairly and with a presumption favoring an equal division. Failing to disclose assets could violate state law and could have serious consequences.
Consequences of hiding assets
If a court discovers that a spouse hid assets, the judge can impose penalties or change its allocation of property. These might include awarding a larger portion of the marital property to the other spouse or ordering the hiding spouse to pay legal fees. The court may also reopen the case if hidden assets are found after the divorce is finalized.
Steps to take if you suspect hidden assets
If you think your spouse is hiding assets, gather information like bank statements, tax returns, and investment records. Look for discrepancies or unexplained transactions. Talk to your attorney about the possibility of hiring a forensic accountant who can analyze financial records to trace missing funds.
Legal remedies available in Indiana
Indiana courts have tools to address hidden assets. In certain circumstances, you can request court orders compelling your spouse to provide financial information. The court can issue subpoenas to banks to obtain records. If necessary, the court can hold your spouse in contempt for failing to comply and adjust the property division to compensate. However, these are all fact-sensitive tools, and you should consult an attorney about whether they may be an appropriate fit for your case.
Protecting your rights during divorce
Dealing with hidden assets is complex, but acting promptly can make a significant difference in your divorce case.