There’s a saying that more money often means more problems. While that may not be true in daily life, it is often true during divorce proceedings. Couples facing high-asset divorces may have a frustrating and complex process ahead of them.
Financial misconduct can occur during any type of divorce, but it may have more serious consequences in a high-asset divorce scenario. Additionally, there’s more incentive to engage in questionable behavior when the marital estate contains more property. People preparing for a divorce filing or responding to their spouses’ petitions may need help monitoring their situations for signs of one of the issues below.
Hidden assets or income
Spouses generally promise to share with and support each other. In most cases that do not involve marital contracts, the income earned by either spouse during the marriage is subject to division if the spouses divorce. Those enjoying a comfortable standard of living are potentially in a position to hide assets or divert income without their spouses finding out. People may have to do a deep dive into financial records to affirm whether their spouses may have hidden resources.
Asset dissipation
Spouses navigating a decline in their marital relationship might lash out at one another. Frequently, their finances or physical assets become one of the most powerful weapons they can leverage against each other. One spouse might try to destroy assets physically. They might also sell them to other people for less than their fair market value or give them away without permission. Some people intentionally empty out bank accounts on unnecessary expenses. Others accrue large amounts of debt that they intend to include in the property division negotiations of their divorces. Even money spent on an affair can constitute dissipation and may affect the overall distribution of marital property.
Intentional unemployment or underemployment
Divorces involving complex marital estates and higher income levels might involve one spouse requesting alimony from the other. If the couple shares children, the higher-earning spouse or the parent with less time with the children might have to pay child support to the other parent. In those situations, the spouse subject to a support or alimony order might attempt to avoid their responsibilities by quitting their job or seeking out a lower-paying career. They may then try to go back to court and reduce or end their financial support obligations. Spouses need to be ready to prove that the lack of a job or underemployment was an intentional tactic used to diminish personal financial responsibility.
Having the right support while preparing for divorce proceedings can limit the likelihood of one spouse engaging in misconduct that has long-term negative consequences for the other. Those preparing for more complex divorce proceedings may be at higher risk than other divorcing spouses for these frustrating forms of financial misconduct, and may want to seek personalized legal guidance accordingly.