Family Lawyer South Dakota: How to Protect Yourself from Marital Fraud and Claim What You're Owed

Understanding Marital Fraud in South Dakota

Marital fraud, a deceptive act perpetrated by one spouse against the other during a marriage, can have devastating financial and emotional consequences. In South Dakota, like elsewhere, marital fraud can take many forms. Recognizing these forms is the first step in protecting yourself.

Types of Marital Fraud

• 💰Concealing Assets: Hiding money, property, or investments from your spouse during the marriage or leading up to a divorce. This is probably the most common form of marital fraud.
• 💸Underreporting Income: Deceiving your spouse about your true income, often to avoid equitable distribution in a divorce. This is frequently done by business owners or those with variable income.
• 💳Excessive Spending: Secretly accumulating debt or spending marital funds on an affair, gambling, or other personal indulgences without your spouse's knowledge or consent.
• 🏦Transferring Assets to Others: Moving assets to a friend, relative, or shell corporation to shield them from division in a divorce.
• 📜Forging Signatures: Signing your spouse's name on financial documents without their permission, such as loan applications or tax returns.
• 💞Marriage for Immigration Purposes: Entering into a marriage solely for immigration purposes without genuine intent to build a life together. Though not directly related to divorce proceedings in many cases, this can lead to financial fraud implications for the non-citizen spouse.

South Dakota Law and Marital Fraud

South Dakota operates under the principles of equitable distribution when it comes to dividing marital property in a divorce. This doesn't necessarily mean a 50/50 split, but rather a fair and equitable division based on various factors. These factors include:

• ⚖️Contributions of each spouse: Financial and non-financial contributions (homemaking, childcare).
• 👴Age and health of each spouse.
• 🙋Earning capacity of each spouse.
• 💔Fault in the divorce (though South Dakota is primarily a no-fault state, egregious marital misconduct, including fraud, can be considered).
• ⏳Length of the marriage.
• 🏡Value and income-producing capacity of the assets of each spouse.

Marital fraud can significantly impact how the court divides assets. If you can prove your spouse committed fraud, the court may award you a larger share of the marital estate to compensate for the loss.

Important Note: While South Dakota is a "no-fault" divorce state, meaning you don't need to prove wrongdoing to get a divorce, evidence of marital fraud can still influence the court's decisions regarding property division and spousal support.

Recognizing the Red Flags of Marital Fraud

Being vigilant and aware of potential warning signs can help you detect marital fraud early on. Here are some common indicators:

• 🕵️Secrecy: Your spouse becomes unusually secretive about finances, hides bank statements, or uses a separate post office box.
• 📵Unexplained Transactions: Large or frequent withdrawals or transfers from bank accounts that you can't account for.
• 🧾Missing Documents: Important financial documents, such as tax returns or investment statements, disappear.
• 🤐Evasive Answers: Your spouse avoids discussing finances or provides vague or inconsistent answers to your questions.
• 😡Defensive Behavior: Your spouse becomes defensive or angry when you ask about money matters.
• 💼New Business Ventures: Sudden and secretive establishment of new business entities or accounts without your knowledge.
• 📱Changes in Lifestyle: Unexplained increase in spending or a sudden change in lifestyle that doesn't align with your income.

Practical Steps to Protect Yourself from Marital Fraud

Taking proactive steps can help you protect your financial interests and build a strong case if you suspect marital fraud.

• 📊Stay Informed: Be actively involved in your family's finances. Review bank statements, credit card bills, and tax returns regularly.
• 📝Keep Records: Maintain copies of important financial documents, including bank statements, tax returns, investment statements, and loan documents.
• 🔒Secure Your Information: Protect your financial information and passwords. Be wary of phishing scams and other attempts to steal your identity.
• 🗣️Communicate Openly: Foster open and honest communication with your spouse about finances. Address any concerns or questions promptly.
• 🏦Know Your Assets: Have a clear understanding of all assets acquired during the marriage, including real estate, investments, and retirement accounts.
• 🔎Consider a Forensic Accountant: If you suspect fraud, consult with a forensic accountant who can trace assets and uncover hidden accounts.

Strategies for Claiming What You're Owed in South Dakota

If you believe your spouse has committed marital fraud, it's crucial to take the right steps to protect your rights and pursue legal remedies.

1. Consult with a South Dakota Family Law Attorney: A qualified attorney can assess your situation, advise you on your legal options, and represent you in court. Look for an attorney with experience in handling marital fraud cases.
2. Gather Evidence: Collect as much evidence as possible to support your claim of fraud. This may include bank statements, financial records, emails, and other relevant documents. A forensic accountant can be invaluable in this process.
3. File for Divorce: Initiate divorce proceedings and formally allege marital fraud in your pleadings. This will put your spouse on notice of your claim.
4. Discovery Process: Engage in the discovery process to obtain additional information from your spouse. This may involve interrogatories (written questions), requests for documents, and depositions (sworn testimony).
5. Negotiation or Mediation: Attempt to negotiate a settlement with your spouse through mediation or other alternative dispute resolution methods. If you can reach an agreement, you can avoid a costly and time-consuming trial.
6. Trial: If you cannot reach a settlement, you will need to present your case at trial. Your attorney will present evidence and argue on your behalf. The judge will then make a decision regarding property division and other relevant issues.

Possible Compensations for Marital Fraud Victims in South Dakota

If you can prove marital fraud, the court may award you various forms of compensation to make you whole.

• 💰Unequal Property Division: The court may award you a larger share of the marital estate to compensate for the assets that were concealed or misappropriated by your spouse.
• 💸Spousal Support (Alimony): The court may award you spousal support to help you maintain your standard of living, especially if you were financially dependent on your spouse. The duration and amount of alimony can be influenced by the fraud.
• 💲Reimbursement: The court may order your spouse to reimburse you for any funds that were wrongfully spent or transferred.
• ⚖️Attorney Fees: In some cases, the court may order your spouse to pay your attorney fees, especially if the fraud was egregious or intentional.
• 🚩Punitive Damages: While rare in divorce cases, if the fraud is particularly egregious (e.g., criminal activity involved), you *might* be able to pursue punitive damages separately in a civil suit. However, consult with your attorney about the viability of this option, as it's not always applicable and has a high burden of proof.

The Role of a Forensic Accountant

A forensic accountant is a financial professional who specializes in investigating financial fraud and irregularities. They can play a crucial role in uncovering marital fraud by:

• 🕵️‍♀️Tracing Assets: Tracking the movement of funds and assets to identify hidden accounts or transfers.
• 🧾Analyzing Financial Records: Examining bank statements, tax returns, and other financial documents to identify discrepancies or irregularities.
• 📈Calculating Losses: Quantifying the financial losses suffered as a result of the fraud.
• 📝Providing Expert Testimony: Testifying in court as an expert witness to explain their findings and opinions.

Hiring a forensic accountant can be a significant investment, but it can be well worth it if you suspect substantial marital fraud.

South Dakota Resources for Victims of Marital Fraud

Navigating a divorce involving marital fraud can be challenging. Here are some resources that can provide support and assistance:

• South Dakota State Bar: Provides referrals to qualified attorneys in your area.
• South Dakota Legal Aid: Offers free or low-cost legal services to eligible individuals.
• Domestic Violence Shelters: Can provide safe shelter and support to victims of domestic violence, which can sometimes be related to financial abuse.
• Financial Counseling Services: Can help you manage your finances and recover from financial losses.

Preventing Marital Fraud: Prenuptial and Postnuptial Agreements

While not foolproof, prenuptial (before marriage) and postnuptial (during marriage) agreements can help protect your assets in the event of a divorce. These agreements can specify how assets will be divided, regardless of potential fraud.

• Prenuptial Agreements: Agreements entered into before the marriage that outline the rights and responsibilities of each party regarding property and finances. They can protect assets you owned before the marriage and can specify how future assets will be divided.
• Postnuptial Agreements: Agreements entered into during the marriage that address similar issues. They are especially useful if your financial situation changes significantly during the marriage (e.g., starting a business, receiving an inheritance).

It's essential to have these agreements drafted and reviewed by an attorney to ensure they are valid and enforceable under South Dakota law.

Disclaimer: This article is for informational purposes only. You should consult with an attorney to discuss your specific situation.