In Tennessee, divorcing spouses must divide their marital property under equitable distribution rules. This means the court divides assets fairly, based on the circumstances of each case.
To do this, the court needs a full picture of each spouse’s financial situation. This is called full financial disclosure. Below are some key points to keep in mind.
What is full financial disclosure?
Full financial disclosure means sharing complete and accurate information about your finances. This includes income, bank accounts, real estate, vehicles, investments, retirement accounts, debts and monthly expenses. Both parties are expected to disclose all relevant financial details.
The purpose of this is to help the court divide marital assets fairly and to determine issues like child support or spousal maintenance. Tennessee courts rely on transparency to apply the law appropriately.
When spouses try to hide assets
Some spouses may try to avoid full disclosure to keep more than their fair share. This can include hiding money in separate accounts, transferring property to others or undervaluing business interests. Others may delay responses or provide incomplete information to slow down the divorce process.
These tactics are often used to gain an unfair advantage or avoid financial obligations. However, the court has procedures in place to uncover hidden assets.
What happens if financial disclosure is incomplete?
If a spouse refuses to cooperate or provides false information, the court may intervene. The judge can order additional documents, allow formal discovery or issue subpoenas. In some cases, the court may impose penalties or adjust the final property division in response to dishonest behavior.
Tennessee law requires honest and full disclosure from both parties in a divorce. Without it, the legal process cannot function as intended. If you suspect your spouse is hiding assets, it is essential to seek legal guidance.