The financial aspect of divorce often causes challenges, overwhelm, and confusion. When dividing marital assets, each party must accurately report all belongings and assets while negotiating a fair settlement and understanding and complying with the state’s property division laws. If navigating such a process alone is difficult, it becomes even more so when considering the potential of hidden marital assets. In certain cases of dividing assets in divorce, some spouses may falsify the dates, values, or ownership of certain assets to get more than they are owed.
Understanding what hidden marital assets are can help to prevent any confusion or loss during a divorce settlement. A skilled South Carolina family lawyer from King Law Offices can help to identify these and ensure proper compensation. Consider scheduling an appointment by calling the office at (888) 748-KING.
How Courts Divide Assets in Divorce
The first step to understanding how to identify hidden marital assets is to understand the various state laws that govern the division of assets in divorce. In general, courts will default to any binding legal agreement or settlement made out-of-court. Prenuptial agreements or other written divorce settlements may take precedence over state laws. However, if there is a disagreement or conflict over the division of assets that cannot be resolved out-of-court, the courts will allocate these divisions per state laws.
There are generally two methods by which courts distribute marital assets, and these are community property and equitable distribution.
Community Property
South Carolina does not subscribe to the method of community property. In a community property state, all assets owned by either spouse are considered jointly owned property, and therefore all assets are distributed equally between them. This may cause conflict during a divorce, especially if the value of the assets that were brought into the marriage are widely different.
Equitable Distribution
When dividing marital assets in South Carolina, courts follow the guidelines of equitable distribution according to S.C. Section 20-3-620. This means that the court will determine how to divide marital property based on several factors. These factors may include the duration of the marriage, the presence or absence of marital misconduct, the physical or emotional health of both spouses, the financial situation and earning potential of both spouses as well as many other consequences. Based on these factors, the courts will decide what assets to award each spouse in the divorce.
Generally Divided Marital Assets
In addition to knowing how assets are divided, it can be beneficial to understand what assets in divorce are generally divided. The assets that are typically the most contested are the high-value items, like real estate, vehicles, and shared back accounts. The waters may also be muddied when one or both spouses own business ventures, as the separate accounts involved may complicate matters.
Family Home
The family home is generally one of the highest-value assets a couple owns, especially in a seller’s market. Oftentimes, homes are a mutual decision after marriage, and can therefore lead to conflict when considering how to divide them. Generally, any real estate owned by a couple is considered marital property, regardless of the name on the title deed.
Shared Bank Accounts
Any accounts such as bank accounts or retirement accounts that both spouses have contributed to are usually also considered marital assets. However, the division of these assets in divorce may vary depending on the financial situation and the contribution of either spouse to the account.
Debts
While many do not consider debt to be an asset that can be divided, courts will also evaluate the joint debt of the couple and allocate it just like other property. This may include things such as credit card debts, loans, or any other financial obligations that both spouses entered into jointly.
Vehicles
Cars and other vehicles are also assets in divorce that are factored into the settlement, provided that they were purchased during the marriage. Depending on the value and depreciation of these vehicles, they may play a unique part in negotiating a divorce settlement.
For more information on marital assets and divorce, consider speaking with an experienced South Carolina family law attorney from King Law Offices.
What Are Hidden Assets?
However, in the process of dividing assets in divorce, there is a chance that certain assets may be hidden or misrepresented so as not to be counted as a part of equitable distribution. According to the South Carolina Bar, the definition of marital property is important in determining what can be divided.
Assets purchased after the marriage and with marital funds are considered marital assets, which excludes business expenses, gifts to one spouse, and assets purchased before the date of the marriage. Therefore, by obscuring the date of purchase or the source, some spouses may try to illegally exempt their purchases from scrutiny and division by the courts.
Identifying Hidden Assets
If one suspects the other spouse of hiding assets, it may be worthwhile to examine the situation and be aware of signs. Some common methods of hiding assets involve devaluing business ventures by increasing spending or overpaying taxes, placing marital funds in a trust fund, or lying about income and presenting it as a gift from a family member. In other cases, marital assets may be placed in offshore accounts, or hidden as cryptocurrency.
Ensuring that all income is properly accounted for and that funds are not being misallocated can help protect against hidden assets. In addition, being meticulous and ensuring that one’s own assets are well accounted for can help protect one from being accused of hiding assets, even if the act was unintentional.
Legal Consequences of Hiding Assets
While many consider misrepresenting assets in divorce as a means to get ahead, this is rarely fruitful because such actions always leave a paper trail that can be followed, revealing the illegal activity. Once this is discovered, the hidden marital assets may have consequences on the equitable division of assets.
Judges will often take this wrongdoing into account and may be in favor of the innocent party. In addition, this willingness to commit fraud may serve as grounds for other charges against the spouse who hid assets. This may affect the judge’s trust in that spouse for the rest of the divorce case, and may also award fines for the misconduct.
Contact an Experienced South Carolina Family Lawyer Today To Ensure Your Financial Rights Are Protected
Dividing assets in divorce can be complicated and stressful, especially when one suspects another party of hiding assets. These suspicions may add an extra burden, while also increasing the emotional turmoil of the process. Navigating such a process alone can be daunting. However, an experienced South Carolina family law attorney from King Law Offices can help by evaluating your individual situation and providing advice. Consider scheduling a consultation by calling (888) 748-KING.