Hidden assets

[klyns01]

What is the name of your state (only U.S. law)? MD

I am in the middle of a nasty divorce - no kids so it should've been easy. I have finally received his financial documents and have found major financial discrepancies in his bank accounts. After spending hours cross-referencing his paystubs to his deposits, I found out that instead of depositing his entire paycheck, he would only manually deposit a portion of it (ie paycheck of 3200 - he would only deposit 2200). There is no accounting of this extra money anywhere and no disclosure that he has it, and over the two years of separation, the amount equals over $56000. I have given all documentation, etc. to my lawyer and am awaiting her reply. However, I am curious as to how the courts may look upon this. What are the legal implications of his actions? He has a job with top secret clearance? Could that be affected as well? Does anyone have any experience with this?What is the name of your state (only U.S. law)?

 

[mistoffolees]

I'm assuming that you've already filed for divorce. In that case, there are default rules against hiding assets. If he has done that and you can prove it, then he could be severely punished. In some cases, you could get 100% of the hidden account once it's discovered.

However, several issues:
1. Just the fact that he didn't deposit the full paycheck isn't proof of anything. It is suggestive, but perhaps he spent the money on legitimate expenses.
2. I would start by having your attorney subpoena all of his financial documents. Ask for the court to order a complete credit check in his name / social security number. The court can also ask for an accounting of his expenditures during the time after the divorce was filed for.
3. If he is found guilty of hiding assets (which would be contempt of court), he could lose top secret clearance. However, be careful before going there - if he loses his job, you could end up paying alimony (maybe not likely, but a possibility).

 

[klyns01]

Yes, I have filed for divorce and we have a pre-settlement hearing Apr. 2. We asked for all of these documents through discovery and he only recently provided them. I have all of his credit card receipts, utility bills, rental agreement, attorney fee receipts, etc. (I literally have gone through thousands of pages of documents and receipts) and there is no accounting for this money which is why I believe he has hidden it away somewhere.

I am hoping to use this information to get a fast and peaceful settlement. By knowing what the potential consequences are, I am hoping my lawyer and I can persuade him to be reasonable in settling this divorce. He has argued every step of the way and has tried to screw me over. Originally, all I wanted was a 50:50 split - no alimony even though his salary is 75% higher than mine (I make a good salary and can support myself). However, now the game has changed and I have racked up considerable attorney fees.

 

[mistoffolees]

Yes, I have filed for divorce and we have a pre-settlement hearing Apr. 2. We asked for all of these documents through discovery and he only recently provided them. I have all of his credit card receipts, utility bills, rental agreement, attorney fee receipts, etc. (I literally have gone through thousands of pages of documents and receipts) and there is no accounting for this money which is why I believe he has hidden it away somewhere.

I am hoping to use this information to get a fast and peaceful settlement. By knowing what the potential consequences are, I am hoping my lawyer and I can persuade him to be reasonable in settling this divorce. He has argued every step of the way and has tried to screw me over. Originally, all I wanted was a 50:50 split - no alimony even though his salary is 75% higher than mine (I make a good salary and can support myself). However, now the game has changed and I have racked up considerable attorney fees.

The bottom line is that you don't know what he did with the money. You need to prove that he hid it in order to win. If you can do that, you should be able to recover at least the portion of your legal expenses related to uncover the hidden accounts.

Your attorney will probably ask the court for a credit report and a search for all accounts in his name. However, that will cover only the U.S., if he hid the money overseas, you may never find it. Depending on the details of what you have, there may be enough for your attorney to ask the court for a 'show cause' order demanding that he explain where all the money went.