Divorces involving wealthy spouses may be more complicated due to the variety of assets involved, which may include financial accounts, real estate, and company interests. Comprehensive procedures to discover, identify and value assets are required because some spouses may try to relocate or hide them.
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Discovery Process
Each spouse compiles a list or inventory to be exchanged throughout the discovery process that fully exposes all assets that will be subject to equitable distribution. The financial information that will be published includes, among other things:
- tax filings
- Banking records
- pay slips
- stocks, IRAs, and pensions
- Applications for loans or mortgages, if appropriate
- Business assets or income
- Trusts
- property holdings
- debts from credit cards or loans
- valuable collections (art, jewellery, etc.)
It is vital to look into the matter further when there is a possibility that there are other assets. Other assets, including offshore accounts, can be found by using technology-based searches and outside investigators. A witness can be subpoenaed and interrogated while swearing.
The Most Common Methods for Hiding Assets
There are several ways that spouses can try to conceal cash and assets, including the following:
- Establishing banking relationships with secret financial institutions or concealing the whereabouts of cash holdings in safety deposit boxes
- Collaborating with members of one’s own family and social circle to launder money in order to pay for bogus personal or professional services or expenses.
- Significant amounts of money were paid to the IRS in error and will be reimbursed if the divorce is finalised.
- Putting off receiving income until after the divorce has been finalised.
- Using a company to launder money by paying fictitious employees or vendors.
- Creating guardianship accounts under the name of another person.
Prenuptial Agreements
The law in Massachusetts permits couples who are preparing to get married to draft a written contract that outlines assets that any one of them may have that would continue to be considered personal assets in the event that the marriage was to end in divorce. Those things that are stated here would not be considered marital assets that need to be divided fairly. These agreements, which are prevalent among people who had large premarital assets before getting married, may additionally incorporate other lawful clauses addressing the distribution of property and assets in the event of a divorce.
