Getting a divorce is typically a
painful and stressful thing to deal with for most. Unfortunately, you can make
an already bad situation far worse financially when you choose to try and hide
assets while going through a divorce. In an attempt to keep money, property and
the like away from your spouse, you will end up paying a lot more as a
consequence for trying to hide assets. If you’ve been thinking about “putting
something on the side” or conveniently failing to mention “extra income” you're
setting yourself up for financial hardship. To help keep you and your bank
account out of harm's way, here are 6 ways to avoid
making unnecessary financial mistakes during your divorce.
1.
Hiding Assets Can Get Really Expensive
Let's say you have an additional bank
account your soon to be ex knows nothing about. So you decide not to disclose
the account and withdraw all of the money instead. Here's the problem, even
though your spouse wasn't aware of the account, in the eyes of the law that
account is considered marital
property. He or she is entitled to half whether they were aware that the
account existed or not. If you spend that money, the judge handling your
divorce can impose financial penalties and force you to pay the amount back to
your spouse.
2.
Failure to Report Your Real Income
If you choose to “fudge” a bit by not
fully disclosing all sources of your income, that's called artificially
deflating your income. This happens a lot during divorces where one spouse
doesn't want to pay spousal
support or wants to show less income in an effort to be able to pay less in
alimony for example. It can be fairly easy to deflate income but doing so will
end up costing you a lot of money in penalties. Manipulating income tax
information can lead to problems with the IRS. That's not a problem you want to
have ever! In the state of Michigan you could also be charged with fraud. That
means spending an enormous amount of money hiring another attorney to defend
you.
3.
A Michigan Divorce Attorney Can Uncover Hidden Assets
In this technological age where almost
everything is accessible on the internet, you leave a “digital
footprint” everywhere. If you think those assets won't be discovered think
again. Forensic accountants can find and trace income, even unreported income
right back to you. So if you try to hide income or submit fake documents it's
not a matter of if you'll get caught, it's when. The consequences are not worth
the financial risks.
4.
Successfully Hiding Real Estate Can Still Cost You Even After the Divorce is
Final
There are instances where a spouse is
successful at hiding a real estate transaction for example. The divorce becomes
final and the ex-spouse walks away free and clear right? That's not necessarily
true. Although once
the divorce is final, a spouse cannot go back and ask the judge in the
divorce to reconsider the terms of the finalized divorce to claim real estate
found after the divorce. However, it is highly possible that the other spouse
can sue in civil court to recoup monetary damages. So hiding real estate even
if you get away with it during the divorce could still end up costing you later
if you're sued.
5.
The Penalties of Hiding Assets in Mt. Clemens MI
In the state of Michigan, the penalties
for hiding assets can be financially painful. If for example you choose not to
list all of the property owned by you and your spouse, a judge can award the
property you attempted to hide to your spouse. As mentioned above you could
also face fraud charges. If that's not enough, a judge can hold you in contempt
of court should you fail to reveal the property during the discovery phase.
That could lead to additional fines.
6.
Attorney Fees
In addition to paying your own attorney
during a divorce, if your spouse's attorney suspects there are hidden assets,
he or she will inquire about those assets and you will be required to respond
accordingly. If you ignore those inquiries by not responding, the judge can
hold you in contempt of court. The judge will most likely fine you and may even
order you to pay your spouse's attorney fees as well.
Make
the Right Choices in Your Michigan Divorce
Choosing to hide assets during your
divorce can cause major financial problems that can last for years. You can
ruin your credit and end up with a criminal record for fraud. Getting a divorce
is painful enough. Don't add to it by hiding your assets. You'll save yourself
a lot of heartache and frustration in the end.
Contact Femminineo Attorneys, PLLC to schedule your free initial consultation,
get Michigan divorce help, and discuss your situation.
Femminineo Attorneys
Michigan Divorce Help
110 S Main St #200
Mt Clemens, MI 48043
United States
(586) 954-9500
http://www.michigandivorcehelp.com/
Michigan Divorce Help
110 S Main St #200
Mt Clemens, MI 48043
United States
(586) 954-9500
http://www.michigandivorcehelp.com/
