Hiding, Diverting, and Stealing Assets Amidst Divorce

While divorce is bound to come with its fair share of arguments and contention, it adds a new wrinkle to the chaos when you believe that your spouse is, or may try, to hide, divert, or steal assets. And with a relationship that is breaking down it is easy to imagine a situation where you are not sure if you can trust this person. Particularly given the uncertainty and financial precariousness that often comes with divorce. It can be hard to tell if a spouse is hiding, diverting, or attempting to steal assets. But here are some things to keep in mind to help ensure that it does not happen to you.

You Have a Right in ALL Community Property (As Does Your Spouse)

In California it is critical to understand the difference between community property and separate property. Community property is any and all property that either spouse has accumulated during the course of the marriage – from the date of marriage to the date of separation. This means, any property or income that you and your spouse acquired during the course of the marriage would be considered community property and subject to division.

Separate property, on the other hand, is any property that you acquired prior to the marriage or after the date of separation, or received as an inheritance, or a gift. Separate property is not subject to division in divorce.

There are exceptions, or course, if the separate property becomes indistinguishable from marital property through co-mingling. This might happen if, for instance, an inheritance of cash is deposited into the couple’s financial investment portfolio. It is easy to imagine how impossible it would be to trace that money and know where the separate property ended and the community property began.

Throughout the divorce it is important to ensure that both spouses have access to the community property items that they need. However, it is also important that neither sell nor lend, valuable items without the other spouse’s knowledge and consent. Spouses owe one other fiduciary duties with regards to the management and control of the marital estate. One important way to prevent a spouse from stealing property and getting away with it is to ensure that you know what you have. Take a complete inventory. This includes items like cars, electronics, financial holdings, items in storage units, jewelry, art, bank accounts, etc. If you do not know what you own, it is far more likely that assets can slip through the cracks. Forensic accounting can be a valuable tool if you have a very complicated marital estate and need a more in-depth, investigative form of inventory and accounting to discover what is it at stake.

Contact Cardwell, Steigerwald Young

The experienced San Francisco property division lawyers at Cardwell, Steigerwald Young are standing by to help with any of your divorce or property division needs. If you suspect your spouse may be hiding, diverting, or stealing assets, engage with our expert team for specific advice on your own unique situation.

 Source:

selfhelp.courts.ca.gov/divorce/property-debts