- January 22, 2025
- Divorce
Acting Appropriately When Your Spouse Does Not
Marriages end for a host of reasons and, unfortunately, not all separations are amicable. In fact, many are quite acrimonious. In situations like this, problems often arise as marital assets are divided. Inevitably, one person believes they are entitled to a larger share and, when that is the person with more financial control, they may be less forthcoming when it comes to financial disclosure.
What can I do when my spouse is hiding assets?
This question is one raised quite often. If you find yourself in this situation, working with an experienced Colorado divorce attorney is critical. This is not a situation you can or should manage on your own. Engage professional representation as soon as possible in order to protect yourself and your financial future.
Assets Can Be Diverse
Understand the Composition of What You Own
The division of property is often one of the most difficult processes in a divorce. Under the best of circumstances, identifying the totality of a married couple’s assets can be challenging; this process is made significantly more difficult when one spouse is not being honest.
The first step in asset division is identifying all of the assets at hand, including marital and separate property. These may include:
- Cash
- Investments
- Cryptocurrency (Bitcoin)
- Real Estate
- Furniture
- Vehicles
- Jewelry
- Artwork
- Family Businesses
- Pensions/Retirement Accounts.
Once a listing of assets is compiled, each item must be categorized as either marital or separate property. Regrettably, during this process many fail to provide an accurate list in order to preserve ownership for themselves.
Property acquired after marriage is, in general, marital property (with some exceptions that your Colorado divorce attorney can explain). These can be complex, making the division of property even more complicated. In addition to identifying the property at hand, it also must be valued, a practice which often results in disagreement. Having skilled and experienced representation is your best defense against actions like this.
The Division of Assets
Because Colorado is an equitable distribution state, issues like marital misconduct do not impact the division of assets. In fact, assets must be divided reasonably, which does not always mean equally.
While cheating does not affect post-marriage asset allocation, other issues, including economic fault or hiding assets, can be considered. In Colorado, spouses are required to provide a complete and honest disclosure of their assets. Those who fail to do so may find their allocation of assets negatively affected and, in some situations, may even face fines and time in prison.
The courts in Colorado recognize that one spouse may not realize that the other one hid assets at the time of divorce, thus a five-year look-back period is available. If you learn that your spouse was dishonest in their asset disclosure at any point within five years from the date of your divorce, you can request your property division agreement be re-addressed.
Dishonesty in Property Division
It Is Not Difficult to Hide Assets
Unfortunately, assets are easy to conceal, even for those who may be less financial savvy. Tangible assets, like art, jewelry, vehicles and furnishings, can be relocated to family or friends’ residences or even put into storage. In some cases, these items can be sold without record and the proceeds undervalued or not shared during the asset disclosure process.
Other actions that may be taken to hide assets include, but are not limited to:
- Opening separate bank accounts in the name of only one spouse or using offshore bank accounts
- Transferring ownership of assets to a family member or friend
- Underreporting income taxes
- Deferring bonuses or salary to be paid after the divorce is finalized
- Intentionally overpaying income taxes in order to receive refunds at a later time
- Transferring money to accounts for children over which only one spouse has control.
Sadly, there are countless ways assets can be hidden, ultimately unfairly impacting the division of property.
How to Protect Yourself
In divorce, as in life, knowledge is power. In all instances, paying attention to what is happening around you is crucial. If you haven’t focused on your shared finances and tangible assets in the past, now is the time to take action.
First, consider consulting an experienced Colorado divorce attorney. This professional can review your personal situation and provide you with advice and counsel on how to proceed. That said, in all cases keeping a close eye on your accounts is key. You want to be aware of any withdrawals made from checking or savings accounts and ensure that you continue to have access to accounts which belong to you. It is also important to monitor your investment accounts as well as any retirement accounts that may have been established in your name or under which you are the beneficiary.
Now is also the time to take a close look at your prior years’ income tax returns. Many times, one spouse takes responsibility for filing and the other will blindly sign the returns, without reviewing them. You want to understand your income in previous years as well as what to expect as you move forward.
Finally, keep an eye on any real estate holdings to ensure nothing has been changed. Information regarding ownership is available online, often through the property tax office. Changes in ownership would be reported and are publicly available.
Hidden Assets Complicate Colorado Divorce Proceedings
Price Family Law Protects Its Clients and Their Financial Well-Being
Do you think your soon-to-be ex-spouse is hiding marital assets in preparation for divorce? If so, acting quickly and decisively is key to safeguarding your future.
The team at Price Family Law, led by Trista Price, is well-versed in managing the intricate financial details associated with divorce, including those in high-asset situations. They know that individuals can be self-serving and may behave unethically and illegally while trying to preserve their wealth as they begin a new chapter in their lives.
Emotions can flare as divorce proceedings move forward; discussions regarding finances tend to bring out the worst in people. The Colorado divorce lawyers at Price Family Law recognize this and know how to handle even the most contentious situations. As a result of their considerable experience, they recognize the tactics taken to hide assets and know how to both prevent this from happening and uncover assets that have been hidden.
Even in the best of situations, divorce is never easy, and the process is infinitely more difficult when one spouse is dishonest. The team at Price Family Law provides insight, direction, and protection when you need it most.
We leverage the experience and knowledge of our entire firm on your behalf as we carefully guide you toward a fair and equitable separation.
Our reputation for hands-on client service is stellar; exceeding your expectations is our ultimate goal.
Schedule Your Free Consultation Today
The old adage” time is money” is especially true in instances relating to the division of assets in a divorce. Don’t wait. Contact our team today. We can be reached at 720-615-1750 and are available to meet with you immediately. We appreciate your position; your concerns are valid and must be addressed.