In Louisiana, assets acquired during marriage are generally presumed to be community property. Hiding these assets is unethical and violates the duty to provide a fair accounting of wealth. Unfortunately, not all spouses follow the rules during divorce. If you suspect your ex is misrepresenting their financial situation, state laws provide powerful tools to uncover the truth.
The starting point
In Louisiana divorce cases, identifying and valuing assets is an essential step in dividing marital property equally. Each spouse must usually file a verified Sworn Descriptive List (SDL) showing community and separate property, fair market values and debts.
Income and expense affidavits also show each party’s income, monthly expenses and basic needs. These forms help the court decide spousal support and child support.
However, the information on these forms may not be fully accurate. To verify income and spending patterns, a judge may also request additional financial documents, including:
- Tax returns for the last three to five years
- Bank statements and brokerage accounts
- Retirement or pension records
- Credit card statements
These records can help confirm the overall financial picture of the marriage, ensuring a fair division of property and support payment calculation.
Digging deeper with subpoenas
When one party is uncooperative, the court can legally compel third parties to produce records, including:
- Financial institutions: Finding off-book accounts or unusual wire transfers
- Employers: Verifying bonuses, deferred compensation or stock options that may not appear on a standard W-2
- Business partners: Ensuring accurate business valuations during the divorce process
These documents can help the judge get the full truth of each party’s assets in cases with suspected nondisclosure.
Following the paper trail
Tracing helps show where the money or assets came from and whether they are community or separate property. This process can also uncover hidden or temporary transfers, including cash withdrawals or money moved to friends or family to keep it out of the divorce.
Your lawyer may also hire a forensic accountant to look for commingling, where separate and community funds are mixed together. If your ex is claiming that an asset is separate property, they must prove it with clear evidence.
Consequences of nondisclosure
Spouses have a duty to preserve and manage community property faithfully. Intentionally hiding assets can have serious consequences. Initial judgments based on fraud may be nullified, which can lead to years of additional litigation.
Louisiana courts can also order the spouse who hid assets to pay the other party’s attorney’s fees and court costs. In some cases, the other spouse may receive a larger share of the community property.
Proceeding without causing escalation
Achieving a truly fair distribution of property requires careful planning to prevent conflict. You can start with informal discovery requests for the sake of closure when you are ending your marriage. Seeking legal guidance can help you determine the best way to keep things transparent with your ex while keeping the peace.