Finding Hidden Assets in a Connecticut Divorce
It’s no secret that going through a divorce can be draining, both financially and emotionally.
However, matters can become even more complicated when your spouse is uncooperative or actively hides certain assets in an effort to keep them from you during the divorce proceedings.
If you suspect that your spouse is hiding money or has otherwise hidden assets in a Connecticut divorce, know that you may have a legal claim for relief.
Read on to learn about your rights and options when it comes to protecting against hidden assets in a divorce.
Then, contact the Connecticut divorce and legal malpractice attorneys at StangerLaw LLC to see how we can assist you today.
Call (860) 561-0651 or reach us online to get started.
Key Points
- Hidden assets can impact divorce outcomes, as one spouse may attempt to conceal income or property to avoid fair division during divorce proceedings.
- Common examples of hidden assets include undisclosed bank accounts, cash, business income, property transfers, or assets placed in another person’s name.
- When hidden assets are discovered, courts may impose penalties and adjust the division of property to account for the misconduct.
Our Practice is Limited to Connecticut
We primarily handle divorce matters where the family’s net worth exceeds $1,000,000, allowing us to dedicate the time and resources necessary to meet the unique needs of our clients.
The Importance of Identifying Hidden Assets in a Connecticut Divorce
Under Connecticut law, the court presiding over the divorce proceedings has the authority to divide and distribute the parties’ property in an equitable manner after considering all of the evidence presented by each party.
However, doing so in an equitable manner will almost certainly be impossible if both parties are not properly made aware of the full extent of the assets and liabilities of their spouse.
Thus, being able to identify and locate all of your spouse’s assets will be crucial to obtaining a fair and equitable outcome in your divorce.
The court does what it can to ensure that spouses share all financial information with each other during divorce proceedings.
When an individual files to end their marriage, both spouses receive automatic orders from the court that forbid the spouses from doing the following while the divorce is pending:
- Concealing property;
- Transferring, exchanging, selling, assigning, removing, or disposing of any property (unless it is done with the written consent of the other spouse, for customary and usual household expenses, in the usual course of business, or to pay attorney’s fees related to the divorce);
- Taking out a loan or otherwise encumbering any property without consent from the other spouse;
- Terminating, diminishing, or removing the other spouse from any health insurance policy;
- Incurring an unreasonable debt;
- Changing the beneficiaries on any of their life insurance policies or diminishing the coverage of existing automobile, life, homeowners, or rental insurance policies; and
- Changing jointly owned (or co-owned) property to property that is owned only by them unless there is consent from the other spouse.
The court’s automatic order also requires that divorcing spouses exchange sworn financial statements regarding their assets and liabilities. Although the court takes these precautions to obtain the best information about the assets and debts it must distribute to each spouse, some spouses are determined to hide what they have in hopes of grabbing a larger slice of the pie.
Common Examples of Hidden Assets in a Connecticut Divorce
When it comes to identifying potential assets that your spouse may be hiding, you should know what to look for.
Examples of hidden assets in a divorce frequently include:
- Retirement accounts from previous jobs,
- Mutual funds,
- Business interests,
- Investment accounts,
- Overseas bank accounts,
- Real estate owned under their own name, and
- Artwork, card collections, stamp collections, and other valuable collectibles.
Notably, spending, transferring, or otherwise reducing or destroying funds and property may also be considered “hiding” assets in a divorce.
Discovery: How to Find Out Whether Your Spouse Is Hiding Assets in a Divorce
The discovery process will play a pivotal role in locating hidden assets. Discovery is the legal process through which parties to a lawsuit request and exchange information about witnesses and evidence that may be used in trial.
During the discovery process, it is imperative to ask the right questions and carefully evaluate any answers provided and materials produced to help you ascertain the existence, extent, and location of any assets that your spouse may be trying to hide.
Each case is different, but information that a spouse might want to request during discovery can include the following:
- Tax returns (for personal and business income),
- W-2 documents,
- 1099 documents,
- Bank statements,
- Retirement account statements,
- Property appraisal reports,
- Pay stubs,
- Leases,
- Titles and deeds to property,
- Trust documents,
- Invoices,
- Receipts, and
- Business filings.
The existence of hidden assets is not always obvious after reviewing just one financial document. But when you review multiple of the above-listed documents together, you might start to see discrepancies that are signs of concealed assets.
For instance, the amount of pay listed on your spouse’s pay stubs might not match the amount of money in their bank account, hinting that they are paying for property that you don’t know about (if the account balance is lower than expected) or hinting that they have an additional, undisclosed source of income (if the account balance is higher than expected).
And if you discover that your spouse’s business owns a dwelling or vehicle that appears to have nothing to do with the business’s purposes, this may be evidence that they are unlawfully transferring assets to their business to hide them from you.
We can appreciate that few people are financial investigators and will likely need help with uncovering assets.
If you have concerns about hidden property in your divorce, an experienced lawyer from StangeLaw LLC has the resources and expertise to comb through financial documents and other evidence to uncover concealed assets.
If necessary, we can even put you in touch with a forensic accountant who has the ability to analyze the most complex of financial issues.
Is There a Penalty for Hiding Assets in a Divorce in Connecticut?
Improperly hiding assets in a Connecticut divorce, especially if done in direct violation of a court order, can result in severe penalties, including:
- Contempt of court,
- Asset forfeiture,
- Reimbursement of the other party’s attorney’s fees, and
- Jail time.
However, your spouse may not be the only party subject to legal ramifications.
Suppose you were represented in a previous divorce by an attorney who failed to conduct appropriate discovery that would have otherwise allowed you to find hidden assets. In that case, you might be able to hold the attorney responsible as well.
Hidden Assets Found After a Divorce: What You Can Do
If, after the conclusion of your divorce, you find out that your spouse hid certain assets that should have been located during the discovery process, it may be time to consider whether the attorney who was representing you at the time was negligent in their representation.
This is especially true and worthwhile if the assets your attorney failed to unearth were worth six figures or more, which can easily happen when a home or business proceeds are involved.
Your divorce attorney owes you a legal standard of care to provide competent and diligent representation. If they fail to do so, causing you financial losses as a result, you may be entitled to relief through a legal malpractice claim.
StangerLaw LLC: Your Connecticut Divorce and Legal Malpractice Attorneys
If you’re unhappy with a current or previous divorce lawyer who has provided you with inadequate legal representation, call us.
Not only do we handle high-wealth divorces, but we also sue lawyers who have caused damage to their clients. Contact our team online or call (860) 561-0651 to discuss your case.
Learn how StangerLaw LLC can help you fight for your rights today.
