Evaluating Hidden Assets And Small Businesses In Property Division
During a complex, contentious divorce case, tempers can flare over emotional issues such as how to co-parent or how to handle child custody issues. But another area ripe for challenges comes when marital assets are divided. Two particularly vexing areas of property division law concern how a small business owned by a spouse is valued and what happens when a spouse tries to hide marital assets.
At Meredith Clark Law, our founding attorney applies her business litigation acumen to the valuation process and will help you receive a fair distribution of property from your marital estate.
Common Problems With Small-Business Valuations
Small-business valuations during divorce present unique challenges that can significantly impact fair property division. Here are the most frequent issues we encounter:
- Incomplete financial records: Missing documentation or poor bookkeeping practices makes accurate valuation nearly impossible without forensic accounting
- Inflated expenses: Some spouses artificially increase business costs or pay excessive salaries to family members to reduce the company’s worth.
- Hidden cash flows: A party could maintain separate business accounts or divert funds to conceal true business worth from the divorce press.
- Timing manipulation: A spouse might delay major contracts or accelerate expenses around valuation dates to temporarily reduce the business value.
- Mixing of personal and business expenses: When owners pay personal expenses through the business, it can distort the true financial picture of the company.
Businesses can be difficult to accurately value. Meredith V. Clark will assist you in determining the business valuation method and will select qualified experts to ensure that your financial interests are always taken into consideration when it comes to dividing the business as part of the divorce.
Types Of Hidden Assets In A Divorce
During divorce proceedings, we often discover assets that one spouse has attempted to conceal. Recognizing these common hiding places can help protect your financial interests:
- Secret bank accounts: Accounts established under individual names, children’s names or in foreign countries to shield funds from the divorce
- Income manipulation: Deliberately underreporting income, delaying bonuses or deferring commissions until after the divorce is finalized
- Cryptocurrency investments: Digital assets that can be purchased anonymously and transferred with traditional bank oversight
- Valuable collections: Art, antiques, jewelry or collectibles intentionally undervalued or completely omitted from financial disclosure statements
- Loans to friends or family: Money “loaned” with informal agreements to return funds after divorce proceedings conclude
- Shell companies: Businesses created solely to hold assets or channel funds away from marital property, often with complex ownership structures
A troubling area of marital property division comes into play if you believe that your ex is hiding assets that should be part of the case. If you believe that assets are being hidden in your divorce, contact Ms. Clark to bring the truth to light so that the marital estate may be divided fairly and equitably.
Reach Out To A Harris County Lawyer: Get The Help You Need
Our firm understands how to research and discover what might be hidden in a divorce filing. Call our office today at 832-301-0191 or utilize our online contact form to schedule a consultation.