Colorado Hidden Divorce Assets
People with substantial assets sadly get divorced in Colorado just as often as the general population. Representing a person with complex financial life requires the absolute best Colorado divorce attorneys. The divorce process will all too often involve fighting for your fair share of hidden assets.
One issue that commonly comes up in high net wealth divorces is a failure to disclose assets, hiding assets, or failing to disclose the true value of assets. Colorado divorce requires both sides to fully and accurately disclose all items that might materially affect the rights and interests of the divorcing people. See C.R.C.P. 16.2(e)(1).
Hidden assets in a Colorado divorce
What happens when you learn your ex hid assets or lied about value during divorce?
In Colorado family law cases, there is a very strong obligation to disclose all assets and debts under C.R.C.P. 16.2. Far too often, however, one side will try to hide the ball. They won’t tell the other spouse about an asset, about a potentially massive business opportunity, about an offer from someone to buy real estate at a very high value.
What happens in Colorado divorces where the innocent spouse learns after the divorce is final that the ex failed to disclose these things? In the recent case of In re Marriage of Bochner, the Colorado Court of Appeals dealt with this very issue. See In re the Marriage of Bochner, case number 21CA0635 (Colo. App. 2022) (unpublished).
When can you go to court to ask for hidden assets after your divorce?
Your ability to obtain value for hidden assets or hidden information that you discover after a final divorce is not unlimited. In fact, it is pretty narrow. Under Colorado law, you have 5 years after a final decree of divorce is entered to file a motion seeking to reallocate the assets and liabilities of the marriage as a result of a material misstatement or omission. See C.R.C.P. 16.2(e)(10).
Colorado courts describe this remedy as “extraordinary” and “very narrow,” and a court should reopen a decree only when doing so is truly justified under the rule. In re Marriage of Durie, 456 P.3d 463, 472 (Colo. 2020).
What about hidden information in a divorce instead of hidden assets?
Often times, a spouse will know that an asset exists (i.e., the husband owns some land, or the wife owns a business), but the spouse may not know specific facts that impact the valuation of that asset.
For example, in Bochner the husband was aware the wife owned a very valuable piece of property. Both sides engaged appraisers who valued the land based on the information given to them. The husband and wife settled and entered into an agreed property division which valued the land at an amount in between the values set by the experts hired by both sides.
Six months after the divorce was final, Mr. Bochner filed a motion seeking relief from the permanent orders und C.R.C.P. 16.2(e)(10). Husband argued that wife had failed to disclose an offer to purchase the land at far above market value while the divorce was proceeding. Husband argued that this information was material in that it would have impacted the appraisal values. Wife disagreed.
The district court sided with wife and refused to let the husband reopen the case. The husband appealed.
The Colorado Court of Appeals agreed with the husband. The Court of Appeals agreed that the Husband met his burden of showing the nondisclosure materially affected the property division. The Court of appeals said the lower finding was clearly erroneous.
The husband was not required to show at the outset what the specific impact of the missing sale offer would have been on the appraisals. He probably should have presented that information, but he was not required to do that.
The Colorado Court of Appeals reversed this nondisclosure of divorce asset case and sent it back to the trial court for further proceedings.
Nondisclosure of assets and hiding assets requires experienced attorneys
Only the top Colorado divorce attorneys are intimately familiar with the issues surrounding nondisclosure of assets and post-decree divorce motions. At Newland Legal, we pride ourselves on staying up to date on cutting-edge strategies to help our clients get a fair share of everything in a divorce. That includes pursuing hidden assets after a divorce decree is entered. Our Evergreen, Colorado litigation boutique is set up to deliver the highest service to a select number of clients dealing with life’s most difficult problems.
Do you have a complicated divorce with substantial financial assets? If your divorce is likely to involve high net wealth in Jefferson County, Clear Creek County, Summit County, or Park County Colorado, you should contact Newland Legal today. Call us at (303) 948-1489 or email us at zach@newlandlegal.com to find out how we can help you in your hidden asset divorce case.
