Fairly dividing assets in a divorce is a tricky and sensitive topic for both parties, but it is an essential part of the divorce. When kids are involved, it’s only more important to ensure assets are fairly divided.
While it can already be a challenge, splitting community property only becomes more complicated when the community and separate assets are mixed. Tracing, or tracking back the origin and development of assets, is essential for uncovering assets in a divorce and ensuring the property is divided equally.
Community vs Separate Property
Property must be characterized in a divorce. Community property includes the accumulations, earnings, and assets of either spouse from the date of marriage to the date of separation. Separate property is the property that either party had prior to marriage or after separation. In a divorce, community property is to be equally divided among each party, and the two parties typically take their separate property.
However, this is not always straightforward. Many parties mix community and separate assets during the marriage.
What is Tracing?
As the name suggests, tracing is a method used to uncover assets. It involves searching back through various transactions to identify the development of assets and liabilities. This method is used to determine when an asset was acquired and how it may have combined with community assets during a marriage.
Tracing can be used to determine separate properties, and it can also be used to uncover undisclosed assets.
Uncovering international assets is a common challenge that people face, as they can e hard to find when your spouse does not disclose them. However, experienced professionals can often uncover international assets with advanced tracing. A professional can request relevant documents for business, bank account, and offshore assets.
Tracing may also be used if one party believes that their spouse is not forthcoming with their assets. In this case, you should get a court order for asset disclosure. The court order will require the spouse to disclose all relevant financial documents and information. Should the spouse fail to disclose assets, they can be charged with contempt of court.
Uncovering Assets is Complicated
Property division during divorce can be tough, especially when uncovered assets are in question. Seeking the expertise of a divorce attorney can offer you professional guidance to ensure you get the assets you are entitled to. Contact Miod today for more information and to schedule an appointment.