Divorce can be stressful. And one of the greatest points of content in most divorce cases is the division of marital property. This is especially true when there are hard feelings, and one party is determined to deprive the other of their fair share of the marital property.
Michigan law requires the divorce court judge to oversee the division of marital property according to Michigan’s equitable distribution laws. For this to happen, there has to be a complete inventory of the marital property. Thus, if one or either party hides marital assets, the court cannot make a fair decision.
Disclosing marital property is a legal requirement
Since each party is required to disclose what they own (and owe), hiding assets during a divorce is an offense. Besides paying the spouse’s legal fees, here are additional consequences a spouse might face if they are found to have hidden marital assets:
- They might end up losing the recovered asset to their spouse
- They might lose all their share of the marital property
- They might lose their credibility with the court
So what does it mean to hide marital assets?
When a couple formally decides to divorce, each party will be required to submit a full list of their assets to the court – both personal and marital. This is known as a fiduciary duty. Under the law, only marital property is put up for a divorce. However, any attempt at a violation of fiduciary duty can amount to hiding marital assets.
Here are some of the things you need to look out for if you suspect that your spouse is hiding marital assets:
- When they withdraw large amounts of cash
- When they go on a spending spree
- When they are giving out large sums in loans and gifts to family, friends and business partners
- When they are overpaying their suppliers or taxes
- When they are keeping large amounts of cash in the family home
Make no mistake; divorce can bring out the worst in people. Find out how you can safeguard your rights and interests while dealing with a spouse who is dishonest about what they own.