Protecting your financial interests during a New York divorce requires vigilance and planning. Two critical issues that can dramatically impact your property division outcome are hidden assets and prenuptial or postnuptial agreements. Understanding how these factors affect your case helps ensure you receive the fair outcome you deserve. At Joseph Law Group, P.C., we provide the thorough advocacy families need when facing these challenges.
When a Spouse Hides Assets or Income
Unfortunately, it is possible for a spouse to attempt to hide assets or income during divorce proceedings. When this occurs, it significantly complicates the divorce process, extending both the timeline and the costs involved. What might have been a straightforward property division becomes a contentious investigation requiring substantial legal resources.
Uncovering hidden assets often requires formal discovery procedures that would otherwise be unnecessary. This can include issuing subpoenas to financial institutions, employers, and other third parties to obtain records. Depositions may be needed to question the other spouse or relevant witnesses under oath. Forensic accountants might be retained to trace funds, analyze financial patterns, and identify discrepancies.
If the parties had been forthcoming with information about their assets, these additional steps and their associated costs could have been avoided entirely. Beyond the financial burden, hidden assets create distrust that makes negotiated settlements more difficult to achieve, often pushing cases toward litigation.
Common signs that a spouse may be hiding assets include sudden changes in financial behavior, unexplained transfers to family members or friends, understating income on financial disclosures, creating debt that does not appear legitimate, and resistance to providing complete financial documentation. If you suspect your spouse is not being transparent about finances, it is essential to work with attorneys who have experience in financial discovery and asset tracing.
The Impact of Prenuptial Agreements on Property Division
The existence of a prenuptial or postnuptial agreement can dramatically change the outcome of property division in a New York divorce. These agreements allow parties to contract their way around the rules and laws that would otherwise apply to them, making them powerful tools for those who plan ahead.
A prenuptial agreement is executed before the marriage takes place, while a postnuptial agreement is created after the couple is already married. Both types of agreements can address how property will be characterized and divided in the event of divorce, whether certain assets will be treated as separate property regardless of how they might otherwise be classified, spousal maintenance or support obligations, and other financial matters the parties wish to define in advance.
New York courts generally enforce prenuptial and postnuptial agreements that meet certain requirements. Each party should have had the opportunity to consult with its own independent attorney before signing. The agreement should have been entered into voluntarily without fraud, duress, or overreaching. There must have been full financial disclosure so both parties understood what rights they were waiving. The terms of the agreement should not be unconscionable.
Using Marital Agreements to Define Your Own Terms
When both parties have been properly advised by their own attorneys, they may knowingly waive rights they would otherwise have under New York divorce law. This freedom to define your own terms can be tremendously valuable in several situations.
For individuals entering marriage with significant pre-existing assets, a prenuptial agreement can ensure those assets remain protected. Business owners can use these agreements to prevent their company from becoming subject to division or valuation disputes. Those who expect to receive substantial inheritances can clarify that such assets will remain separate property. Parties with children from prior relationships can use agreements to protect assets intended for those children.
Even couples already married can benefit from postnuptial agreements that address financial concerns that have arisen during the marriage or simply provide clarity about how assets would be handled if the marriage were to end.
Protecting What Matters Most
Whether you are concerned about a spouse hiding assets, need to understand how a prenuptial agreement affects your divorce, or want to explore creating a postnuptial agreement, working with knowledgeable legal counsel is essential. At Joseph Law Group, P.C., we bring over 100 years of combined experience to families facing complex property division matters.
Our client-centered approach means we take the time to understand your unique circumstances and concerns. We provide honest guidance about your options and advocate fiercely to protect your financial interests. Contact us today to schedule a consultation and learn how we can help you navigate these complex matters.
