If you are getting divorced in Massachusetts, you want to know that your spouse is telling the truth when they disclose their financial information. Sometimes, spouses hide money in a divorce although there can be harsh circumstances when a court learns of it. However, one billionaire in a Texas divorce moved nearly all of his money to another state, and there does not seem to be much that the court can do about it.
South Dakota has become an asset haven
The man took advantage of very permissive laws that were intended to encourage out-of-state money to come to South Dakota. The state allows for the establishment of asset trusts, and the money and property in them are virtually impossible to touch. Even foreign tycoons look to the state when they are trying to shield money from their governments. The Texas man moved billions of dollars of property to South Dakota and out of his own name.
The wife will have difficulty recovering money
After he established the trusts, he secretly switched beneficiaries as was permitted under the laws of South Dakota. He was not even obligated to inform his wife of the fact. After she learned of her divorce by registered mail, the wife went looking for the couple’s money. She was stunned to learn that all of their property, including her jewelry, was moved to these asset trusts that she cannot touch. Now, she faces long odds to receive her share of the marital estate.
If your divorce involves any sort of assets, it may be beneficial to have a family law attorney on your side. It is difficult for the average person to detect a pattern of asset hiding. An attorney may know which information to request in discovery and understand the tricks that some spouses use in order to keep assets out of the marital estate. The attorney may then take the matter in front of a judge, who will likely disapprove of the fact that one spouse is being deceptive.