Divorce sometimes arouses a lot of emotions, including bitterness, anger, helplessness, sadness and depression. Not only are there emotional scores to be settled, but financial matters at stake as well. These include spousal support, property division and child support.
In most states of the country, including Michigan, courts propose an equitable division of marital property. Hence, it is not uncommon for individuals to hide their assets in order to avoid giving an equal share to the partner. Divorce-related costs can soar through the roof if spouses suspect that one is hiding assets from the other. Sometimes, spouses even go to the extent of hiring private investigators to track down hidden assets -- and fees for such activities may wind up costing thousands of dollars.
Consider the instance of a woman who suspected her husband of hiding marital property, for example. As a result of the woman's suspicions, the divorce proceedings turned very bitter. The incident happened about 12 years ago and at that time she shelled out $15,000 to hire a private investigator. Her spouse was a medical professional and had a past philandering. The private detective found a deposit box where the man kept approximately a million dollars. This discovery compelled the husband to increase the share of assets during property division.
Naturally, the man also wanted to avert court proceedings about these cash transactions from patients. Of course, not all transactions are such expensive propositions.
Fortunately, there is a low-cost alternative for spouses as well. Such low-cost methods are available for divorced spouses who can recover overdue payments from their former spouses, too. Property division is definitely a critical matter in divorce and therefore people need to know their rights.
Source: AccountingWeb.com, "Playing Detective: Using Tax Returns to Uncover Hidden Divorce Assets," Julian Block, Dec. 29, 2014