If you are going through a divorce, or have watched friends and family go through a divorce, you have likely heard about the concept of “disclosing assets.” Through the divorce process, spouses are required to disclose all of their financial assets – even if they may have owned them prior to the marriage.

Imagine the process accounting for each and every thing you own – bank accounts, sentimental photos, retirement accounts, stock certificates, valuables, cars, collections, hobby equipment, jewelry, tools, furniture, electronics, etc. You get the picture. It is quite the process. It is easy to see how a spouse might not fully disclose each and every one of their assets.

However, it is also easy to see how a spouse could use this daunting inventory process to claim they “just forgot” a specific asset – when the truth is, they didn’t disclose the asset because they didn’t want to split the asset with their soon-to-be ex-spouse. Divorces often bring out the worst in people, and hiding assets is one of the “bad behaviors” that emerge in the divorce process.

Without having specific knowledge of their spouse’s income and assets, many people finalize their divorce without really knowing what was in their marital estate. There are some signs to look out for if you suspect your spouse of hiding assets:

• New bank account statements from accounts you do not recognize
• Unexplained funds “missing” from joint accounts
• Spouse claims a sudden decrease in income
• Decrease in deposits to joint accounts
• Spouse begins gifting or loaning money to friends and family
• Spouse complains about money but makes big purchases

Even if you notice some of these signs above, it does not mean your spouse has been successful in their attempts to hide assets. If one spouse was solely responsible for managing money, the other spouse has the right – through the discovery process – to request copies of all financial documents relevant to the marriage. You will be able to obtain tax documents, account statements, loan documents, and any other paperwork that relates to assets. If your spouse refuses to provide the requested documentation, they can face sanctions from the Court – including having to pay your attorney fees, having the court continue (or delay) your divorce trial, or even possible dismissal of the case.

If you have concerns that your spouse may be hiding assets it is worth it to contact a divorce attorney as soon as possible to discuss ways to protect your assets and your legal rights. Hartung Schroeder is well-versed at guiding our clients through the pre-divorce and divorce stages of uncovering all marital assets. Set up a consultation with us to ensure you understand the details of your specific situation.

ABOUT LAURA LOCKWOOD

Laura Lockwood is a collaborative attorney and mediator, practicing primarily in the area of family law. Having received extensive training in the collaborative and mediation processes, Laura believes strongly that peacemaking is an invaluable skill — particularly in family law. You can read more about Laura or get in touch with her here.

In Iowa, child support is calculated pursuant to the Iowa Supreme Court’s Child Support Guidelines which can be found here.

The stated purpose of the Guidelines is to: “provide for the best interests of the children by recognizing the duty of both parents to provide adequate support for their children in proportion to their respective incomes.  While the guidelines cannot take into account the specific facts of individual cases, they will normally provide reasonable support.”  (See Rule 9.3).

However, the Guidelines DO NOT specify the child related expenses they are intended to cover. Accordingly, we are left to advise clients on a case-by-case basis as to what constitutes a “reasonable” expense that was intended to be covered by their monthly Guideline Child Support.

As a general rule, monthly child support DOES cover a proportionate share of the child’s food, clothing and shelter expenses at the other parent’s residence.   It is also reasonable to assume that child support covers the child’s reasonable and necessary public school expenses:  registration, lunch tickets, school related extra-curricular activities, etc.

It is also fair to assume that monthly child support DOES NOT cover private school tuition, select sports & activities, private lessons, summer camps, special school trips / travel, prom dresses & tuxedos, electronic devices, cell phones, cars, etc.

As a rule of thumb, we typically advise clients that it is reasonable to assume that if the expense can be considered a basic necessity (food, clothing, shelter, medicine, public education, etc.) – it is most likely provided for in Guideline child support amount. However, if it is a discretionary expense that a Court would or cannot “order” a parent to provide (i.e. private tuition, cell phone, automobile, etc.) then parents first need to discuss and agree upon whether such an expense should be incurred – and how much each parent is willing to contribute towards such expense(s).

Despite the “uniform” Guidelines, the calculation of monthly child support can also be very nuanced – involving multiple considerations including but not limited to income (or income capacity), tax implications, health care costs, number of dependent children, day care expenses, etc.

For more information about how your Child Support should be calculated or what it should pay for – the attorneys at Hartung Schroeder are available to assist.

I am often asked by clients how they can go about changing or modifying an existing child support order. If one thing is certain about a child support (particularly if entered when children are young), it is that the child support amount will likely need to be modified at some point in the future. Any changes in the parties’ financial circumstances – including income changes for either parent, changes in healthcare coverage, birth of a new child to one of the parents, parenting schedule changes, etc. – can result in a change in child support. The Child Support Recovery Unit (through the Department of Human Services) does offer an option for an Administrative Modification of child support. However, these administrative modifications are limited in when they can occur, in what income changes the Court can consider, and in what is considered a “change in circumstances” to warrant a modification.

Hartung Schroeder is able to assist our clients with an initial child support review to determine if further legal action is necessary to protect the client’s rights and to ensure they are paying (or receiving) the appropriate amount of child support. If clients have proof of income for themselves and the other parent, that initial review and assessment is quick and easy. After that assessment, the client will have the necessary information to determine if they should move forward with a child support modification action. If the other parent’s income is unknown, the filing of a child support modification action in District Court triggers a requirement for the parties to exchange financial information. Once that information is obtained from the other parent, Hartung Schroeder is able to determine the other parent’s income, calculate and create new Child Support Guidelines worksheets, and determine the appropriate amount of child support. Child support modification actions are often quick and easy, but they do require the keen eye of an attorney to ensure that all income sources are reviewed and all aspects of the Guidelines are considered in order to obtain the best possible financial outcome for our clients.

ABOUT LAURA LOCKWOOD

Laura Lockwood is a collaborative attorney and mediator, practicing primarily in the area of family law. Having received extensive training in the collaborative and mediation processes, Laura believes strongly that peacemaking is an invaluable skill — particularly in family law. You can read more about Laura or get in touch with her here.