Colorado law follows the equitable distribution principle in divorce proceedings, meaning the court divides marital property equitably, though not always in a 50/50 split. However, as a divorce becomes imminent, the fear of losing half of a lifetime’s wealth can be overwhelming for some spouses.
Despite potential sanctions and penalties, they feel tempted to shield accounts or property from the process. Understanding your rights to a fair financial future is essential if you have concerns about your spouse’s behavior.
Common tactics used to conceal wealth
High net worth divorces often involve complex financial webs, which can make hiding assets easier. Spouses may use several methods to lower their perceived value, including:
- Transferring large sums of cash to “shell” accounts or giving “loans” to friends that they expect back later
- Asking employers to delay bonuses, commissions, or salary increases until after the court signs the final decree
- Reporting lower profits in a family business by padding expenses or paying nonexistent employees
- Overpaying the Internal Revenue Service to create a significant tax refund for the following year
These dishonest tactics create an inaccurate picture of the marital estate. Identifying any red flags early helps you protect your share of the assets. Contacting an attorney is advisable, as a knowledgeable lawyer can help you avoid these and other avoidable financial pitfalls during a divorce.
Steps to take if you suspect deception
If you believe your spouse is being dishonest about your marital estate, gather documentation immediately. You should look for “financial footprints” that reveal the truth about your household spending.
Collect several years of tax returns, bank statements, and investment records, as Colorado’s Rules of Civil Procedure require the exchange of these documents. Identify lifestyle inconsistencies where reported income does not match your actual standard of living.
Be on the lookout for new accounts or sudden changes in mail delivery. Colorado’s “automatic temporary injunction” prohibits both spouses from transferring, encumbering or concealing assets upon the filing and service of the divorce summons.
How your lawyer locates assets
Skilled attorneys use a formal discovery process to bring hidden wealth to light, involving interrogatories (written questions answered under oath) and depositions. Also, knowledgeable lawyers collaborate with forensic accountants to trace digital and physical paper trails across global accounts.
Colorado courts demand full financial disclosure and do not tolerate transparency issues. Judges may impose heavy sanctions on a spouse who lies about their finances. In some cases, the court may award a larger portion of the known estate to the nonoffending spouse.
Transparency and precision
Disclosure of all marital property is essential to a fair legal outcome. Attempting to untangle complex financial concerns alone often leads to costly mistakes. Having skilled legal guidance ensures that the final division of property reflects your actual economic reality. An experienced divorce attorney can help you confidently secure the resources you need for your next chapter.