Manhattan property division attorney Richard Roman Shum (https://www.romanshum.com/blog/husband-selling-assets-before-divorce/), of The Law Office of Richard Roman Shum, Esq., PLLC, has issued crucial guidance for individuals facing divorce where asset dissipation by a spouse may be involved. In his recent article titled "Husband Selling Assets Before Divorce," Shum emphasizes the importance of understanding and safeguarding financial rights as divorce proceedings approach, particularly in New York, where equitable distribution laws govern the division of marital property.
Richard Roman Shum, a Manhattan property division attorney, outlines the potential legal implications for individuals whose spouses engage in asset dissipation, a practice that can severely affect one’s financial standing after divorce. Asset dissipation refers to the deliberate mismanagement or misuse of marital property in an attempt to reduce the share that the other spouse might claim during a divorce. This act is not only unjust but also punishable under New York divorce law, as it undermines the fairness of asset division.
Shum explains that many individuals facing divorce may be unaware of the legal protections available to them when a spouse sells or transfers assets before divorce proceedings. "In cases where asset dissipation is suspected, it’s essential to take swift legal action to protect your financial future," says the Manhattan property division attorney.
Understanding the distinction between marital and non-marital assets is one of the first steps in protecting one’s financial interests. Under New York law, marital assets include all property acquired during the marriage, such as homes, cars, businesses, and even retirement accounts. These assets, regardless of how they are titled, are subject to equitable distribution. Richard Roman Shum further elaborates that equitable distribution does not necessarily mean a 50-50 split but rather a fair allocation based on various factors, including the length of the marriage, the financial standing of both parties, and contributions to the household.
Shum explains how courts handle premeditated asset dissipation, noting that when a spouse is caught selling, transferring, or otherwise disposing of marital property without consent, the courts take a critical view. "If proven, asset dissipation can result in significant penalties for the offending party," says Shum. Courts may order the recovery of assets or, in cases where the assets cannot be recovered, compensate the wronged spouse through other means, including adjustments to alimony or child support payments. In some cases, the court may deduct the value of dissipated assets from the offending spouse's share of the remaining marital property.
The article provides a comprehensive overview of the strategies some individuals may use to conceal or devalue marital assets before a divorce. One common tactic is transferring property to friends or relatives, intending to reclaim it after the divorce is finalized. Another strategy involves the rapid sale of high-value assets at prices significantly below market value, thereby reducing the apparent value of the marital estate. Shum cautions clients to be vigilant about sudden changes in financial patterns, unexplained transactions, or unusual business dealings by their spouse, as these could signal attempts to hide assets.
"If you suspect your spouse is attempting to undermine your financial standing by selling or transferring assets, it is important to act quickly," Shum advises. The Manhattan property division attorney encourages individuals in this situation to gather evidence of any financial discrepancies, such as bank statements, receipts, or transaction logs, and consult with a legal professional who can help protect their interests. Shum adds that his team of legal professionals is well-equipped to trace dissipated assets and, where necessary, employ forensic accountants to uncover hidden wealth and further ensure that all marital property is accounted for during divorce proceedings.
Manhattan property division attorney Richard Roman Shum also discusses the broader legal consequences for those caught dissipating assets. In New York, courts can impose a range of penalties, from financial compensation to the wronged spouse to punitive measures, such as fines or, in extreme cases, legal repercussions. Shum stresses that the legal system is designed to protect both parties and ensure a fair division of assets.
As divorce cases can become highly complex, Shum underscores the importance of seeking legal representation to navigate property division and asset protection. The Law Office of Richard Roman Shum, Esq., PLLC, can offer personalized legal strategies to safeguard the financial interests of its clients. "Our priority is ensuring that our clients receive their rightful share of marital assets and that their financial future is secured," Shum affirms.
About The Law Office of Richard Roman Shum, Esq., PLLC:
The Law Office of Richard Roman Shum, Esq., PLLC, is a Manhattan-based law firm well-versed in property division, divorce, and family law. With a deep understanding of New York's equitable distribution laws, attorney Richard Roman Shum and his team are dedicated to helping clients achieve fair settlements and protect their financial rights during divorce proceedings.
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