Gavel Insight

🕵️ Understanding Hidden Assets in Divorce Settlements Divorces can be emotionally and financially complex, especially when one spouse attempts to hide assets. Uncovering these hidden assets is crucial to ensuring a fair settlement. In Arkansas, family attorneys play a key role in identifying concealed property and income. 💼 Common Ways Spouses Hide Assets Spouses may use various tactics to conceal wealth during divorce proceedings: - Offshore Accounts: Storing money in foreign accounts to avoid detection. - Undisclosed Income: Failing to report bonuses, commissions, or freelance earnings. - Overpaying Taxes: Some individuals prepay taxes or overpay creditors to receive refunds after the divorce. - Transferring Assets: Gifting or transferring money to relatives or friends to hide true financial status. - Underreporting Business Revenue: Business owners may manipulate financial statements to reduce the apparent value of their enterprise. - Undervaluing Property or Investments:...

Understanding Community Property Laws in New Mexico 🏡⚖️ New Mexico is a community property state, which means that most debts and assets acquired during the marriage are considered jointly owned by both spouses. When a couple divorces, the courts generally divide both assets and liabilities equally unless there are valid reasons to deviate from this standard. ➡ Key Considerations: ✔ Debts incurred during the marriage – These are typically divided equally. ✔ Debts incurred before marriage – The spouse who originally took on the debt is usually responsible. ✔ Debt responsibility exceptions – Some debts, such as those resulting from fraud or reckless spending by one spouse, may be assigned solely to that person. Identifying Marital vs. Separate Debt 💳🔍 Before dividing debt, it's essential to determine whether it is marital or separate debt. Courts will categorize all financial obligations using these criteria: ✅ Marital Debt: Debts acquired during the marriage, including: ...