During the divorce process, the estates of both parties are lumped into one estate and then divided according to the process of equitable distribution. Equitable distribution means that the courts don’t have to divide the marital estate in half as they do in community property states. The courts can favor one spouse with more of the marital estate than the other. This could happen because one spouse has significantly more earning power than the other spouse. It could also happen because of bad conduct during the marriage. In these cases, the marital estate is not divided in half but equitably in a way that is fair to both parties. So, it could happen that one spouse attempts to hide assets or fails to disclose assets during the discovery period of the divorce. This way, the hidden asset is not subject to equitable distribution. 

In case you’re wondering, it is illegal to hide assets during the discovery phase of the divorce. However, some folks try to do it. It is a particular problem when one spouse controls all of the assets in a marriage, and the other doesn’t know what assets they have. In these cases, it helps to have an Indiana divorce lawyer represent your interests to ensure that you’re getting your fair share of the marital estate. 

Hidden assets lead to unfair property division

When your marital assets are divided by the family court, they are split in accordance with Indiana’s equitable distribution laws. This principle allows the court to divide marital assets unequally, favoring one spouse over the other. Typically, the court will presume that a 50/50 split of the marital estate is fair. However, other factors can make a 50/50 split of the marital estate unjust and unfair. One of the factors that influences the division of assets is the economic circumstances of each spouse, their earnings, and their earning power. 

Indiana considers all assets that a couple owns to be marital assets unless proven otherwise. Even if an asset was obtained prior to the marriage, it is still considered a part of the marital estate. 

If a spouse hides assets during the discovery phase of the divorce, the courts wouldn’t consider those assets a part of the marital estate. The spouse who hid the assets would get an unjustly large portion of the marital estate. This is unfair to the spouse who did not hide assets. It could put them in severe financial hardship. 

Hidden assets also affect the mediation process. Even when spouses negotiate their separation agreement in divorce mediation, hidden assets will still impact the process because the spouses are attempting to determine a fair split of the assets.

Talk to a Danville, IN Divorce Lawyer Today

Chris Arrington represents the interests of divorcing couples in Danville, IN. If you believe your spouse is hiding assets, your divorce lawyer is your lifeline to a fair distribution of the marital estate. Call our office today to schedule an appointment, and we can begin discussing your options right away.