TDC Family Law
  • Home
  • PRACTICE AREAS
    • Divorce
    • Spousal Support
    • Child Support
    • Child Custody
    • Visitation
    • Complex High Asset Divorce
    • Contempt of Court
    • Paternity
    • Pre and Postnuptial Agreements
    • Mediation Coaching
    • Alternative Dispute Resolution - Mediation and Collaborative Divorce
    • Parenting Coordination
  • Bio
    • Certified Family Law Specialist
  • Blog
  • FAQ
    • What does the area of Family Law cover?
    • No Fault Divorce
    • Parenting Plan
    • “Move Away” After Divorce
    • Annulment
    • Community Property
    • Difference Between Physical and Legal Custody
    • When would a postnuptial agreement be necessary?
    • What does it mean to have a fiduciary relationship to your spouse?
    • Residency Requirements for a Divorce in California
    • Summary Dissolution
    • Legal Grounds for Divorce in California
    • Attorney Fee Awards in California
    • The impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on Divorce
    • Divorce Process in California
  • Resources
  • Contact

TDC FAMILY LAW BLOG

Dealing with Hidden Assets During a Divorce

9/25/2018

0 Comments

 
Picture
A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another's benefit. A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is accepted by the other person.  In a fiduciary relationship, one party has an obligation to act for the best interests of the other.  The most commonly cited fiduciary relationship is between an attorney and a client.  The attorney, regardless of how they may feel personally, must act in their client’s best interest.

A couple going through a divorce has a fiduciary responsibility to each other with respect to their community property until that property has been divided.  This does not mean either side has act for the best interest of their soon to be ex-spouse at the expense of themselves.

In California, divorcing couples are required to file forms with the court that truthfully disclose all their assets including bank accounts, real estate, income, and other high value assets, such as cars, boats, vacation homes, jewelry or art, creating that fiduciary agreement. 

If one party submits these forms with a false or inaccurate account of assets, they are breaking that faith and confidence.

California is a community property state, meaning all assets that a couple acquired during the course of the marriage are usually divided equally between parties.  Whether one person earns or receives more income or property, those assets are jointly owned.  When a party attempts to hide some of those assets from their partner they are not holding up their part of the fiduciary responsibility. 

If a husband, for example, knows that divorce is on the horizon and decides to skim some funds from a joint account into a private account, or if a wife were to use their joint account to buy a horse, or a new condo, or take lavish vacations, they are not living up to their responsibility.  Lowering your bottom line by moving funds or going on spending spree is the same has hiding assets.

Assessing a property’s actual value as opposed to the perceived value is best done by an unbiased third party, to reduce the likelihood by one or the other undervaluing the property.  This deliberate understatement of value can make it difficult for the court to accurately calculate the entirety of marital property.  Understated value will also cause your spouse to then counter with a stated value that is well above the actual value.  Each side is going to want to represent the numbers in a way that benefits their case.

The penalties for hiding assets can be significant when the attempt to do so is brought out into the open.  If found hiding assets, the court may impose sanctions.  Since your unethical actions forced a court procedure, you may also find yourself saddled with court costs, including your spouse’s legal fees.  If the assets were found after the divorce was finalized, you can be subject to contempt of court and the judgment can be voided.  Ultimately, when found out, your liability will be far greater than the value of the assets you attempted to hide.

When you work with us as you go through your divorce, we will take a complete look at your assets, property, and income to make sure that everything is being reported in a fair way.  We will also, through the process of discovery, look at what your spouse is reporting to ensure that everything seems to be in order.  If we see inconsistencies we can bring in experts, such as forensic accountants to see what the numbers are telling us.

Representation of divorce cases in movie and television always come down to a vicious court battle.  Screaming attorneys and judges pounding the gavel makes for good drama, but the truth is far different.  Judgments are often bases on a formula.  Also, being a community property state takes a lot of the guesswork and deliberation out of the picture.  When it comes to determining the value of marital assets, so much of it is also based on formulas or on current appraisals.  Hidden assets cause the basis of almost all financial decisions to be incorrect.  This leads to a longer and drawn out process and more legal problems.
​
As you go through the process of divorce, if you believe your spouse is hiding assets, we will work with you to bring the truth to light.
0 Comments



Leave a Reply.

    Archives

    September 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    January 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    June 2017
    May 2017
    March 2017
    February 2017
    December 2016
    November 2016
    October 2016
    August 2016
    May 2016
    April 2016
    March 2016
    February 2016

    Categories

    All

    RSS Feed

Law Pay Logo

​
Copyright © 2019 TDC FAMILY LAW  All Rights Reserved.
Disclaimer - Privacy Policy 
1210 SOUTH BASCOM AVENUE, SUITE 224
SAN JOSE, CALIFORNIA 95128-3535
TEL: 408-267-8484/FAX: 408-267-8489
www.TDCFAMILYLAW.COM


Santa Clara County/San Mateo County San Jose, Santa Clara, Cupertino, Los Altos, Sunnyvale, Los Gatos, Monte Sereno, Saratoga, Palo Alto, Morgan Hill, Gilroy, Redwood City


DIVORCE/CHILD CUSTODY/CHILD VISITATION/CHILD SUPPORT/SPOUSAL SUPPORT/PERSONAL PROPERTY AND REAL PROPERTY DIVISION/CONTEMPT/MODIFICATIONS/DCSS/COURT APPEARANCES/PRIVATE SETTLEMENT JUDGE/EX PARTE MOTIONS/DOMESTIC VIOLENCE/RESTRAINING ORDERS/BUSINESS MATTERS/CONSULTING ATTORNEY IN MEDIATION/ REGISTERED DOMESTIC PARTNERS (RDP) AND SAME SEX MARRIAGES
  • Home
  • PRACTICE AREAS
    • Divorce
    • Spousal Support
    • Child Support
    • Child Custody
    • Visitation
    • Complex High Asset Divorce
    • Contempt of Court
    • Paternity
    • Pre and Postnuptial Agreements
    • Mediation Coaching
    • Alternative Dispute Resolution - Mediation and Collaborative Divorce
    • Parenting Coordination
  • Bio
    • Certified Family Law Specialist
  • Blog
  • FAQ
    • What does the area of Family Law cover?
    • No Fault Divorce
    • Parenting Plan
    • “Move Away” After Divorce
    • Annulment
    • Community Property
    • Difference Between Physical and Legal Custody
    • When would a postnuptial agreement be necessary?
    • What does it mean to have a fiduciary relationship to your spouse?
    • Residency Requirements for a Divorce in California
    • Summary Dissolution
    • Legal Grounds for Divorce in California
    • Attorney Fee Awards in California
    • The impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on Divorce
    • Divorce Process in California
  • Resources
  • Contact