In a Michigan divorce, marital assets are distributed equitably. Therefore, the division isn’t necessarily 50/50. Instead, the court uses many factors to ensure both assets and liabilities are divided fairly.
However, there may be times when one spouse wants more than their fair share, thus hiding some of the assets from their ex-spouse and the court.
The accounting detective
Concealing assets can significantly sway the outcome of property division, alimony and child support. If not uncovered, one spouse could unfairly end up with a larger portion of the marital assets.
There are several methods that a person can use to hide assets, such as:
- Gifting cash or paying off “loans” for friends and families with the intent that the money will be returned after the divorce is finalized.
- Bank accounts or investments may be created in the name of a business
- Underreporting income and marking up expenses
- Undervaluing certain luxury items such as artwork, jewelry and vehicles.
Working with a forensic accountant is one of the most effective ways to uncover hidden assets. They combine accounting expertise with detective work to analyze financial records and uncover irregularities. Forensic accountants review complex systems in order to trace hidden funds that your spouse is working hard to keep hidden.
Forensic accountants will look carefully at your tax returns, pay stubs and credit card activity. They will be on the lookout for unusual withdrawals, new charge accounts or transactions that can’t be easily explained. These are all potential red flags that could indicate hidden assets. You are likely very familiar with your spouse’s financial habits, so sudden changes can also be a sign that something is amiss.
Michigan courts don’t look favorably upon people who try to cheat the system. Equitable division only works if both parties are transparent. In addition to a forensic accountant, you will want someone who is going to advocate for you and help you get the marital assets to which you are entitled.