Accounting for Assets During Property Division
In New York, the marital estate is subject to equitable division, that is, fair allocation of proceeds to both parties. The only assets divided during divorce are those that are known — so how do you know your entire marital estate is on the table when it comes time to divorce?
Whether out of fear of not having enough money after divorce or simply to deprive a departing spouse, partners sometimes underreport or hide marital property. Documents signed during the divorce process require you to verify the truthfulness of your financial statements and accountings. If you lie about your holdings, there are legal consequences.
That said, people stash cash and other assets in different ways. During divorce, understanding your financial situation is crucial. If considering divorce, try to create an accurate financial picture for yourself prior to discussing divorce with your partner. Tax returns, investment records and bank account statements are sometimes easier to access before separation.
We are the largest family law firm in Long Island and we handle property division matters daily. When approaching the marital estate, we investigate the following circumstances that may indicate hidden assets:
- Purchase of small, expensive or often overlooked articles or property as a means of absorbing cash until after asset division
- Over payment of tax liabilities
- Savings and investment accounts with declining balances
- Delayed bonus money, deferred income, raises or stock options in anticipation of divorce
- Loans and gifts to friends and family
Fair division of property is essential to retaining your financial health after divorce. If you have questions about your marital estate, contact us at Bryan L. Salamone and Associates, P.C.