Many spouses enter a contested divorce scenario with a troubling suspicion: their spouse is not being completely honest about finances. Hidden bank accounts, undisclosed income, secret investments and unreported business assets can significantly affect property division in a Tennessee divorce. Fortunately, Tennessee law provides powerful tools to help uncover assets that a spouse may be attempting to conceal.
The most important resource one can gain access to in these situations is the formal legal discovery process. Discovery allows a spouse and their attorney to obtain financial information directly from the other party and, in some cases, from third parties. Unlike informal requests, discovery may inspire legal consequences if a party fails to comply or provides false information.
What does the discovery process generally entail?
One common discovery tool is interrogatories. These are written questions that the other spouse must answer under oath. Interrogatories may require detailed disclosures regarding bank accounts, retirement funds, investment portfolios, real estate holdings, business interests, income sources and transfers of money.
Document requests are also important. Through formal requests for production, a spouse can compel the disclosure of financial records such as tax returns, bank statements, credit card statements, loan applications, investment account records and business documents. These records often reveal inconsistencies between what a spouse claims and what actually exists.
Subpoenas serve as another powerful method of investigation. In situations where a spouse may not voluntarily produce complete information, attorneys can seek records directly from banks, employers, accountants, investment firms and other third parties. Subpoenas may uncover accounts or assets that were never disclosed during the divorce process.
Do I need to take advantage of the discovery process?
Warning signs of concealed assets may include unexplained cash withdrawals, missing financial statements, sudden transfers to friends or relatives, unusual business transactions or significant discrepancies between reported income and actual spending habits. If you and your spouse are going your separate ways and you suspect that they are concealing assets, it’s time to learn more about your rights.
Tennessee courts expect both parties to provide full and honest financial disclosures during divorce proceedings. When hidden assets are discovered, courts may impose sanctions and adjust property division accordingly. Seeking legal guidance can help you to navigate the process of holding your spouse accountable for any concealment as successfully as possible under the circumstances.