When marriages end, the division of property should be straightforward and fair. However, some will use sophisticated legal tools to conceal assets from their spouses during divorce. It is helpful to have a basic understanding of these tactics and Colorado’s legal protections if you are concerned your soon to be ex is hiding money or property.
Common methods used to conceal wealth
Those who are looking to conceal their assets may use various complex financial instruments that are difficult to trace. Some examples can include:
- Creating secret trusts that keep their names off public records
- Establishing limited liability companies (LLCs) with opaque ownership structures
- Transferring assets to offshore accounts in jurisdictions with strict privacy laws
- Gifting property to family members or trusted associates with informal agreements to return the assets later
- Undervaluing businesses or personal property during disclosure processes
These strategies exploit legal privacy protections designed for legitimate purposes but repurposed to obscure the true extent of marital wealth. The complexity of these arrangements often requires experienced divorce attorneys to uncover.
Colorado’s approach to property division and disclosure
Colorado is an equitable distribution state, meaning division of marital property is fair, though not necessarily equal. The law requires both spouses to provide complete and honest financial disclosure during divorce proceedings. This often means both parties to the divorce must complete the following steps:
- Submit sworn financial statements detailing all assets, debts, income and expenses
- Provide documentation supporting their financial disclosures, including tax returns, bank statements and business records
- Update their financial information if circumstances change during the divorce process
Failure to comply with disclosure requirements can result in serious consequences, including court sanctions, unfavorable property division and potential criminal charges. Colorado courts take financial transparency seriously and have the authority to penalize spouses who attempt to hide assets.
Protecting your rights
Although Colorado law is designed to reach fair outcomes based on honest disclosure, the wise take steps to protect their interests and account for all marital assets. While sophisticated tools may help to hide assets, the legal system provides mechanisms to uncover deception and protect your right to an equitable division of marital property.