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Preventing asset depletion in a divorce

On Behalf of | Nov 2, 2016 | Divorce

While some divorces are amicable and people behave in a trustworthy way, some Minnesota residents who are ending their marriage may need to beware of their spouse dissipating assets. This can be a particular problem in relationships where one spouse has worked outside the home and earned all of the income. Asset dissipation is something that can be done easily by those who know that they can simply earn the money back after the divorce, and it can be devastating for those who might depend upon that income to support them after years of caring for a home and children or while they retrain to reenter the job market.

People who are concerned about this type of matter may be able to seek a temporary restraining order. This court order prohibits a spouse from making significant change to the financial status of the marriage. A person who believes the assets have already been dissipated may be able to identify how. For example, credit card statements may have personal expenses under a company name.

In some cases, it might be necessary to hire a forensic accountant who can look over accounts and find where the assets may have gone. To claim asset dissipation, it will be necessary to demonstrate that a substantial amount was spent and that the spending was frivolous.

Other ways that asset depletion may happen include creating a shell company and hiding evidence of bonuses received. People who are concerned about the possibility of asset depletion might want to discuss their concerns with their family law attorney. If they have not worked outside the home during the marriage, they may also be unfamiliar with the family finances. They might want to gather as many financial documents as they can for the attorney to review.

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