During a divorce, both parties are entitled to all financial records related to the marriage regardless of where the money may be located. Financial disclosure is legally required because, as part of the divorce process, the couple’s marital assets must be divided and spousal support as well as child support may also need to be calculated. If you suspect that your spouse is withholding information and is hiding money in another country, there are steps you can take to address the problem.
Getting Financial Records
Financial records are disclosed as part of the discovery process in divorce. Documentation that must be provided may include bank, retirement and investment account statements; loan documents; credit card statements; insurance policies; wills; trusts; deeds/title certificates; tax returns; business records and other relevant documents.
If a party refuses to provide financial information, the other side can get a court order that requires the non-compliant spouse to produce documents pertaining to the case. Alternatively, a spouse can subpoena a third party with relevant financial information, such as an accountant, financial advisor, employer and financial institution.
Dealing with Foreign Assets
Where a party has transferred assets to another country, it can be difficult to obtain information. Typically, a party would have to hire local counsel and go through that country’s procedures to obtain information. However, in some countries, it is hard to get financial records.
There are also practicalities to consider. It can be costly to retain local counsel and locate financial institutions that may have information.
A less expensive option may be to present information to the court about the transfer of funds. You would have to prove to the court that there was money in an account in the U.S. and that it was transferred out. You don’t have to show where it is currently located. In determining how to divide property, the court will grant you a 50-cent on-the-dollar credit against assets in the U.S. For example, if $100,000 was transferred to a foreign account, you would get a $50,000 credit that would be taken out of your spouse’s share of the U.S. assets.
Dealing with financial issues in divorce can be contentious especially if one side is not being honest. If you are suspicious of your spouse, discuss it with your attorney to help ensure all assets are found.
Contact us to discuss how we can help protect your rights and get the best result in your case.
