Uncontested divorces are common among couples that don’t have many assets. They’re easy, less expensive, and don’t take much time. The same cannot be said in high-asset proceedings, where marital property division can take years to settle. To that end, let’s explore the landscape of a high-wealth divorce.
What’s the key to navigating a complicated, high-asset divorce? In a word: information. The more you know, the better you’ll be able to determine your fair share.
Legal tools to use in a high-asset divorce to get your fair share
In Texas, property division is based on assets and debts acquired after marriage. As such, couples fight for rulings that benefit them, which always involves squabbling over commingled marital property.
What tools are used to achieve this goal? Every case is different, but complicated divorces typically involve voluntary disclosures, involuntary disclosures, depositions, investigators, appraisers, and interrogatories.
Voluntary disclosures
Voluntary disclosure typically occurs at the beginning of the discovery process. It’s the opening salvo where both parties reveal their assets and debts. During this phase, parties may try to fudge their financial portfolio.
Depositions
Depositions are formal interviews where one party’s lawyers ask the other party questions, and the answers can be used in court. Traditionally, the person being interrogated is accompanied by their lawyer to keep the conversation on track.
Interrogatories
Interrogatories are requests for information that must be answered truthfully within a specific amount of time. They’re sometimes called involuntary disclosures and typically involve the revelation of:
- Tax filings and returns
- Bank statements
- Titles and liens
- Estate and trust documents
- Safety deposit entry information
- Financial statements
- Retirement account information
- Savings account balances
Private investigating, forensic accounting, and appraising
In complicated cases where one party is playing fast and loose, investigators, appraisers and forensic accountants come in handy. They dig until they get to the truth and aren’t easily corruptible.
What are some common asset hiding techniques?
Hiding assets is an age-old trick in high-asset divorce cases. Typical tactics include:
- Missing bank accounts or bank statements
- Unlisted cars and real estate
- Underestimate the value of assets
- List inaccurate child support figures
- Leave out information about additional gifts and income
- ”Lose” Social Security statements
- Hide credit cards and stock options
- Submit misleading asset condition reports and appraisals
- Create non-existent employees to increase the bottom line on their debt and asset columns
- Create phony debt
- Claim an asset was sold or lost
Use the Internet as a tool. Check social media for expensive vacations and gifts that may fall outside of what your estranged spouse is claiming in legal documents.