Divorces involving significant assets, higher incomes and a comfortable standard of living tend to be more complicated than divorces with fewer resources at risk. Spouses are often eager to preserve their standard of living and to retain as much of the marital estate as they can.
Higher-asset marriages may also be at risk of other sources of complications. Financial infidelity is a perfect example. Professionals define financial infidelity as the intentional misrepresentation of economic circumstances between spouses. One spouse might hide part of their income or some of their assets from the other. They might also lie about how much debt they have. Financial infidelity might lead to divorce because it undermines the trust between spouses. It can also significantly complicate the divorce process.
Financial matters are subject to intense scrutiny
The most immediate concern that can complicate property division proceedings in a case involving financial infidelity is uncertainty about the accuracy of financial disclosures. A spouse who has previously lied about their income, assets or debt might also lie during the divorce process in the hopes of manipulating the outcome. The other spouse and their attorney may, therefore, need to go over financial disclosures and other documents very thoroughly. They may even bring in an outside professional, like a forensic accountant to perform a more exhaustive review of financial records.
Settling out of court could be risky
A prior history of financial deceit from one spouse makes mediation, collaboration and uncontested divorce less beneficial. People who settle their divorces through mutual agreements can sometimes sidestep the rules, like the obligation to fully disclose their finances to each other in the courts. Someone who misrepresents their resources could convince their spouse to settle for far less than they deserve from the marital estate. Is often necessary to take such cases to trial specifically to have a judge review matters. That way, if one spouse later discovers hidden assets or income, they may be able to turn to the family courts for assistance.
Preparing for a high-asset divorce after discovering financial infidelity may require more effort than the preparation process for a standard divorce. Those who discover that a spouse has lied about their finances may need to take extra steps for their own protection.
