Divorce is a challenging process, but when you have a high-net-worth estate, it introduces another level of complexity. Many of the couples that our high net worth divorce attorneys work with in the Southfield and Oakland County area have spent decades building a life and a marital estate together. As that marriage comes to an end, it’s not unusual for one spouse to feel as if they are being cheated out of their fair share of those assets.

It’s an unfortunate but common reality. We see one spouse try to hide or devalue marital assets to reduce what they have to give up in the final property division. Uncovering hidden assets is crucial in a high-net-worth divorce. It is the only way to ensure the property division is based on a complete and truthful picture of the couple’s finances. Uncovering hidden assets through financial forensics becomes a powerful and sometimes necessary tool in high-net-worth divorce cases.

The Foundation of a Michigan Divorce

Under Michigan law, marital property is divided equitably, which means fairly, but not always equally. The court’s goal is to ensure both parties leave the marriage with what they need to move forward. To make this happen, a judge must have a complete understanding of all assets and debts, including retirement accounts, businesses, real estate, and investments. Without this, there is no way for the court to make a fair ruling.

Michigan law requires both parties to fully disclose all their financial information early in the divorce process. A party that intentionally withholds or hides assets is breaking the law and can face severe penalties. The judge can award all of the concealed property to the other spouse and may even order the deceptive spouse to pay for the costs of uncovering the hidden assets.

The Discovery Process: How We Uncover the Truth

The initial step in any divorce is the discovery phase, a formal, legal process that involves gathering all relevant information. In a high-net-worth divorce, we take an aggressive approach to discovery. We have to, because it is the only way to ensure that nothing is missed. Uncovering the truth includes formal requests for documents, such as bank statements, tax returns, and business records. We’re also able to serve subpoenas on third parties like banks or employers.

We use this information to piece together a clear picture of your family’s financial situation. Our team is meticulous in reviewing documents for any red flags, looking for signs such as large cash withdrawals, suspicious transfers to unknown accounts, or sudden changes in a business’s income. Reviewing financial documents is the first line of defense against hidden assets, a process that requires a diligent and uncompromising approach.

How a Forensic Accountant Can Help

Sometimes, a spouse’s financial picture is so complicated that a standard review of documents is not enough, especially if the case involves business owners and high-income earners. A forensic accountant is a specialized financial professional who can be brought into a case to investigate complex financial records. They can dig through a person’s finances with an experienced, analytical eye, searching for assets you may not even know existed.

A forensic accountant’s work often reveals common ways a spouse may try to conceal wealth, such as:

  • Devaluing a business: A business owner may intentionally decrease the company’s stated worth to lower its value in the divorce settlement
  • Creating fake debts: A spouse might create a fake loan with a friend or family member to reduce the amount of money available for division
  • Overpaying taxes: A spouse may overpay their taxes and have a significant refund waiting to be claimed after the divorce is finalized
  • Large cash withdrawals: A spouse might pull out a large amount of cash before filing for divorce and hide it in a safe, a safety deposit box, or other places

These are just a few examples of the ways a spouse may try to hide assets, and a forensic accountant knows exactly what to look for and how to prove it.

The Local Context: The Oakland County Circuit Court

In Southfield and across the county, divorce cases are handled by the Oakland County Circuit Court. While Michigan law applies to all divorces, each court has its own procedures and judicial preferences. For example, the Oakland County Circuit Court has a family division that assigns cases to judicial teams, and a specific process is in place for filing documents, including an e-filing system.

This local knowledge is crucial. Our team has decades of experience fighting in this court. We know how the system works and how to navigate it to protect your interests. We understand that a high-net-worth divorce in Southfield is not the same as one in another state or even another part of Michigan. We know how to prepare a case that will stand up to the scrutiny of the Oakland County courts and opposing counsel.

Protecting What’s Yours

Going through a high-net-worth divorce is a complex process that can be financially and emotionally draining. You’ve worked hard to build your wealth, and you should not have to face an unfair or inequitable property division. Our firm’s history is built on leveling the playing field for men in family court. We have a solid reputation for aggressive, diligent, and knowledgeable representation, and we take our clients’ cases to heart.

When you work with us, you are not just hiring a law firm; you are hiring a legal advocate who will fight for what you deserve. Our team will take an active, personalized role in your case, working closely with you to create a strategy tailored to achieving your goals. We pursue your goals with our legal talent, our uncompromising mindset, and our decades of experience.

We are ready to fight for you. If you are facing a high-net-worth divorce in the Southfield or Oakland County area, we encourage you to call ADAM – American Divorce Association For Men today for a free phone consultation at (248) 290-6675.