Divorce is a difficult process. Alongside the emotional aspect, you must also handle complex legal issues. In Michigan, the law requires both spouses to disclose all of their assets and debts during the divorce process. Failing to do so can result in serious consequences. If a spouse is hiding assets or debts during a divorce, it’s essential to act promptly to ensure that each spouse receives a fair and equitable settlement. Below is some important information that could be useful if you believe that your spouse is hiding assets from you.
What Are Marital Assets Under Michigan Law?
In Michigan, “marital assets” generally include any property either spouse acquires during the marriage. Whether the title or deed contains only one spouse’s name or both does not matter. These assets are subject to “equitable distribution,” meaning they will be divided fairly between spouses in accordance with MCL 552.19 and MCL 552.401. Note that equitable does not always mean equal. Experienced family law attorneys should be involved in every complex legal process, including divorce cases.
Common marital assets include:
- Homes and other real estate
- Retirement accounts, stock options, deferred compensation
- Bank accounts, investment portfolios, and retirement funds
- Vehicles, collectibles, and valuable personal property
- Business interests and closely held companies
- Intellectual property and royalties
- Deferred compensation or stock options
Warning Signs That Your Spouse May Be Hiding Assets
Unfortunately, some spouses try to manipulate the divorce process by hiding some assets from their spouse, the spouse’s attorney and the court so that their spouse will not find out about them. Be on the lookout for signs such as:
- Unexplained withdrawals or account transfers
- Sudden changes in income or business practices
- Living beyond their reported means
- Refusal to provide financial documents or discuss money
- Discovery of unknown or undervalued assets
If you notice these kinds of red flags, your spouse may be hiding assets.
How a Michigan Divorce Attorney Can Help You Uncover Hidden Assets
Attorneys can use a range of legal tools to uncover hidden assets and protect their client’s interests in a Michigan divorce:
1. Formal Discovery Tools
Attorneys can use subpoenas, interrogatories (written questions that must be answered under penalty of perjury), and requests to obtain tax returns, bank records, business ledgers, and other relevant documents.
2. Forensic Accounting
Attorneys can utilize forensic accountants who specialize in identifying concealed or undervalued assets and tracing complex financial transactions, as well as flagging inconsistencies in asset reporting.
3. Depositions
Attorneys can depose your spouse or other witnesses. Questions during a deposition can reveal inconsistencies that can lead to the discovery of hidden assets.
4. Settlement Leverage
If your divorce attorney uncovers financial misconduct by your spouse, they might use that information to negotiate a more favorable settlement or request that the court award a greater share of the marital estate to you because of the misconduct.
Consequences for Hiding Assets in a Michigan Divorce
Michigan courts disapprove of dishonest financial behavior. If your spouse has intentionally concealed assets during your divorce, the court may:
- Sanction them under MCR 2.114(D) or MCR 3.206(C)
- Award you a larger share of the property
- Order them to pay your attorney fees for the time spent uncovering the hidden assets (MCL 552.13)
Protect Your Future—Don’t Let Financial Deception Undermine Your Divorce
If you live in Lansing, Ingham County, Okemos, Mason, Clinton County, Dewitt, Eaton County or anywhere in the surrounding Mid-Michigan area, and you suspect your spouse is hiding assets, you don’t have to face this alone. Our family law attorneys at The Kronzek Firm are ready to help you fight for the outcome you deserve.
📞 Our attorneys have assisted thousands of clients in Mid-Michigan for over three decades. Call us today to schedule a consultation at (517) 886-1000. Our phones answer 24/7 are we are available for crisis intervention.
[Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult an attorney for personalized guidance.]