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The response provided below is specific to Divorce attorneys in the jurisdiction of Los Angeles. If the response is inadequate, please submit a detailed inquiry.
Identifying Hidden Assets in Divorce
Legal Framework for Divorce and Asset Division in Los Angeles
In Los Angeles, California, the division of assets during a divorce follows the principles of community property law, which essentially states that most property acquired during the marriage is considered jointly owned and should be divided equally upon divorce. Specific statutes that pertain to these principles include California Family Code sections 760, 770, and 2550. For relevant information and statutes, the California Courts official website provides resources and information.
Strategies to Uncover Hidden Assets
Uncovering hidden assets often requires a multi-faceted approach:
- Forensic Accountant: Hiring a forensic accountant can be critical in tracing and locating hidden assets. They are skilled in analyzing financial records and can uncover discrepancies that may indicate hidden assets.
- Discovery Process: During the legal divorce proceedings, you have the right to use the discovery process to obtain financial disclosures. This includes interrogatories, depositions, and requests for document production.
- Court Orders: If you believe your spouse is hiding assets, you can request a court order to compel your spouse to produce complete financial disclosures.
- Private Investigator: If necessary, a private investigator might be employed to track down physical assets or undisclosed income sources.
Understanding the Costs
Los Angeles is known for having higher legal costs due to the high cost of living and competitive market. Here's a table showcasing some average costs:
| Service |
Average Cost in Los Angeles |
Percentage Difference from National Average |
| Forensic Accounting |
$350 per hour |
+25% |
| Private Investigator |
$100 per hour |
+10% |
| Initial Divorce Attorney Retainer |
$5,000 |
+20% |
| Full Divorce Process (Contested) |
$25,000 - $50,000 |
+30% |
| Court Motion for Financial Disclosure |
$1,500 - $3,000 |
+15% |
The costs can vary widely based on the complexity of the case and the specific services required. Note that these figures are not exact and will fluctuate based on individual circumstances.
Complexities of Hidden Asset Cases
Cases involving hidden assets are inherently complex due to the concealment of financial information and the often intricate methods used to hide assets. Here are three hypothetical case studies and resolution approaches:
-
Overseas Accounts: Spouse A suspects Spouse B has offshore accounts. A forensic accountant and possibly an international private investigator would be engaged, and the attorney would prepare subpoenas for foreign bank records.
-
Business Underreporting: Spouse A believes Spouse B is underreporting business income. The discovery process would be used to subpoena business records, and a forensic accountant would analyze the business's financials.
-
Physical Assets: Spouse A thinks Spouse B is purchasing physical assets (like art, jewelry) to reduce liquid holdings. A private investigator could track purchases, and any discovered assets would be reported to the court.
Essential Questions for Further Action
- Have you noticed any large or unusual transactions in your bank accounts that you cannot account for?
- Are there any sudden changes in lifestyle or spending habits of your spouse that might indicate hidden income or assets?
- Is your spouse self-employed or involved in a business that could easily manipulate earnings or expenses?
Common Concerns and Solutions in Hidden Asset Divorce Scenarios
Q1: How can I prove my spouse is hiding assets?
Gathering concrete evidence is crucial. This evidence can come from a meticulous review of financial documents, hiring a forensic accountant, using the discovery process, or even obtaining a court order if necessary.
Q2: What happens if hidden assets are found after the divorce is final?
Post-judgment actions can be taken to address the concealment of assets. The court may reopen the case to redistribute assets fairly and may impose sanctions on the spouse who hid the assets.
Q3: Can the hiding of assets affect spousal support and child custody?
Yes, financial dishonesty can impact spousal support calculations and may affect the court's view of a spouse's character in custody decisions.
Q4: What if I can't afford a forensic accountant or private investigator?
You may request the court to order your spouse to pay for these costs if there's a substantial reason to believe assets are being hidden, especially if there's a significant disparity in financial resources between spouses.
Q5: How long does the discovery process take in uncovering hidden assets?
The timeline can vary greatly depending on the complexity of the finances involved, cooperation of the other party, and the court's schedule. It can take from a few months to a year or more in highly contentious cases.
To navigate through this process effectively, consider reaching out to experienced divorce lawyers who specialize in asset investigation or to local Los Angeles support groups for those going through a divorce. It's also beneficial to educate yourself on California's divorce and asset division laws for a better understanding of your rights and what to expect.
Disclaimer
This content is for informational purposes only and does not establish an attorney-client relationship. It's always recommended to consult with a local attorney about your specific situation.
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