Discovery and Negotiation

If you suspect your spouse is hiding financial information from you, do not ignore these concerns, especially if you are going through or considering a divorce. It is important that all financial information is available to both spouses in order to make the right decisions regarding your future after a divorce.

People can hide money in extremely creative ways. There are certain signs you can watch out for if you suspect your spouse is hiding financial information. These signs include:

• If the value of your property is unusually low. Sometimes, a spouse can take money or equity out against a property or asset, without informing the other person in the marriage.
• If your spouse’s income looks much lower than it normally does. People can request that their paychecks be deposited into a different account, or set it up with their employer to withhold more money so their paychecks appear lower.
• If your spouse will not share, or is hesitant to share financial information with you.

Family Owned Business

If you and your spouse own a family business it can be very difficult to determine the value of the company and properly divide the business fairly and accurately. There are certain questions attorneys will consider when trying to determine the best way to divide a family owned business:

• Was the business established before or after the marriage?
• How much has the company grown since the beginning of the marriage?
• Did either spouse work for the business full time?
• Where did the initial investment come from? Was it marital funds or separate funds?
• Did both partners jointly run the company?

In order for a business to be considered marital property, it must have some value. However, it is very easy for an individual to hide money, fail to disclose bank account information, and argue that a business is less valuable than it actually is.

Some of the common ways an individual can easily hide finances and other assets include:

• Failing to report or disclose account information
• Underreporting financial statements and income tax returns
• Putting people on a payroll that do not actually work for the company
• Claiming to repay fake debts
• Making secret arrangements regarding pay raises or bonuses with other employees until after the divorce
• Delaying any deal or contract that may be profitable until after the divorce
• Altering the businesses finances to make it appear less valuable than it really is

The Deposition

If you believe your spouse is hiding financial information and decide to take him/her to court, you will have to go to a deposition. A deposition is your testimony under oath. During a deposition the opposing counsel will ask you questions regarding the case. The main difference between these depositions and a trial is that there is no judge present at a deposition.

The opposing side wants to ask you questions for two main reasons:

• They want to know what you know about the case. Whatever story you tell the opposing side during a deposition must be the same one you tell in court. It is very helpful for the opposition to know what they are up against in a court of law.
• If they catch you in a lie it will make you appear less credible. When you appear less credible the jury is most likely going to cast doubt on your testimony, which can hurt your chances of obtaining the finances you are after.

There are certain key points you must remember when giving testimony at a deposition. Anything you say can and most likely will be used against you by the opposing side during a trial. The opposing side will try to ask you questions that can hinder your chance in court.

Some important things to avoid are:

• Do not give your opinion. You should only give the facts that you know.  Most likely your attorney will object to any questioning regarding your opinion, but it is best to be on your guard about this.
• Only give answers to facts that you absolutely know. Even if you think you know the answer, or should know the answer, do not say anything unless you are certain it is factual. Never make a guess about anything.
• Do not pull out or reach for any document or piece of information unless your attorney tells you to do so.
• Do not let the opposing lawyer anger or fluster you. Testimony said as a result of emotions can be used to your disadvantage during the trial. It also makes your testimony a lot less effective.
• You never have to justify an answer. Just give the facts. Do not apologize or give and explanation for what you say.
• When your attorney speaks, stop what you are saying immediately and let him/her talk.
• Tell the truth and do not rush. There is no time limit to a deposition, and any lies will drastically hurt your credibility.
• Do not volunteer information unless it is addressed in a question. The less you say the better. Simple answers like “yes” “no” and “I don’t know” are perfectly acceptable.

Documents

There are certain documents your attorney must review in order to represent you to the best of his/her ability. These documents are important in order to effectively prepare for a case involving the distribution of separate and martial assets. Documents you should bring to your attorney include:

• Stock option records and certifications of stocks, bonds and mutual funds
• Income tax returns from over the last three to five years
• Life insurance policy certificates
• Payroll stubs and other information regarding income
• All banking information including checks and statements
• Pensions, retirement fund records and profit sharing documentation
• Property appraisals
• Real property deeds
• Any property tax returns from as early back into the marriage as possible
• Applications for loans made within the last five years
• Insurance policies
• Employment records and contracts
• Documentation of any outstanding debt
• Wills and trusts
• Personal and business account records or ledgers
• Any medical bills, prescriptions, diagnoses or evaluation made within the last three years
• Any and all charge account documents
• Firearm registration
• Any financial statements submitted to a bank or lending institution
• Documentation of any partnership or joint venture agreements
• Documents, videos or photographs regarding the sale of real estate
• Personal property documents
• Motor vehicle records
• Judgments or pleadings from when you were either a plaintiff or defendant
• Brokerage documents regarding security and commodities accounts and mutual funds
• Records of corporate interest
• A list of safe deposit box contents

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