Some divorces are a simple agreement involving distribution of assets, but many are not. Some parties in these cases use immoral methods to withhold finances from their partner during a separation. An example of this is the dissipation of assets. This takes place when someone uses excessive spending or borrowing as a means of wasting marital assets. It is an unfortunate but real aspect of human nature that some people will use any means available to them to maliciously and greedily steal what should be shared assets for themselves, and with this reality it is necessary to address these situations and be sure each party receives what they are due.
What is Bad Faith?
These licentious acts are in bad faith, a conscious misdeed with dishonesty or misrepresentation of true intent. These are differentiated between simple cases of poor judgment or isolated incidents of negligence. In bad faith a party intentionally acts to withhold marital assets from the other party. The party may also attempt to obstruct the law by misrepresenting facts as they are discovered. These actions are considered when determining payment and sanctions.
Another example of bad faith is the secretion of assets, where one party hides assets that would be distributed between both parties during settlement. This can take place as soon as the acting party begins considering a divorce. Naturally this can become very complicated and expensive, requiring forensic accountants to analyze financial records for evidence. Assets can be hidden in the form of conveying them to friendly third parties and closely-owned businesses that can be difficult to value.
Bankruptcy in Alabama Divorce
Sometimes bankruptcy is used in bad faith to a party’s advantage in divorce cases, such as to avoid making payments and distribution of property and alimony. The law is capable of identifying when action is taken to avoid post-marital support and keep this from allowing a spouse to avoid rightful payment.
It is important to hire an attorney capable of procuring all finances and assets you are due and work in good faith for you even if your spouse does not give the same courtesy.
To schedule an appointment for consultation at our Birmingham office, call us at (205) 512-3331 or contact us through this website.