Michigan Hidden Assets Checklist

Michigan provides robust discovery tools under MCR 2.305–2.310, including interrogatories, depositions, and subpoenas to banks, employers, and financial institutions. Request five years of tax returns (Schedules B, C, D, E, and K-1 reveal undisclosed income sources), bank statements, credit card records, and retirement account statements. Compare reported income against lifestyle spending—significant gaps suggest hidden funds. For complex situations involving business interests or cryptocurrency, forensic accountants can trace assets through transaction analysis and blockchain forensics.

Michigan courts impose severe consequences for asset concealment. Under the Sands v. Sands precedent (442 Mich. 30, 1993), judges may award 100% of hidden assets to the innocent spouse as an equitable remedy. Additionally, lying under oath on the mandatory Verified Financial Information Form (CC 320) constitutes perjury, a felony carrying potential fines and incarceration. Courts may also impose sanctions including attorney fee awards and contempt findings against the concealing spouse.

Under MCR 2.310, request comprehensive financial records: five years of federal and state tax returns with all schedules, three years of bank and brokerage statements, retirement account statements (401k, IRA, pension), business financial statements and K-1s, loan applications (which require honest asset disclosure), credit card statements, cryptocurrency exchange records, and life insurance policies showing cash value. Also request payroll records from employers and documentation of any trusts or business interests.

Yes. Under MCR 2.612(C)(1)(c), you may file a motion within one year of the judgment to set it aside based on fraud, misrepresentation, or misconduct—with no due diligence requirement. After one year, MCR 2.612(C)(1)(f) allows courts to grant relief for "any other reason justifying relief" within a reasonable time. Many Michigan divorce judgments now include disclosure clauses stating that undisclosed assets remain subject to future discovery and division as marital property.

Consider a forensic accountant when your spouse owns a business, has complex investments, maintains cryptocurrency holdings exceeding $50,000, or when lifestyle significantly exceeds reported income. Forensic accountants analyze tax returns, trace asset transfers, examine business records for underreported revenue or overpaid employees, and can testify as expert witnesses. While costs range from $5,000 to $25,000+ depending on complexity, their findings often uncover assets worth substantially more and can strengthen your negotiating position or court case.

Watch for sudden large cash withdrawals, unexplained debt increases, complaints about reduced income despite unchanged lifestyle, delayed bonuses or stock options, payments to unfamiliar vendors or "consultants," transfers to family members, and new safe deposit boxes. Tax returns showing significant decreases in reported income or new business losses warrant scrutiny. Cryptocurrency red flags include unexplained bank transfers to exchanges, references to digital wallets, and sudden interest in cold storage devices.

Michigan courts classify cryptocurrency acquired during marriage as marital property subject to equitable distribution. Spouses must disclose all digital assets on the Verified Financial Information Form (CC 320), including Bitcoin, Ethereum, NFTs, and exchange account balances. Courts may divide crypto in-kind, order it sold with proceeds split, or offset its value against other assets. Because cryptocurrency can be difficult to trace, courts increasingly rely on forensic specialists who analyze blockchain records and exchange transaction histories.

Michigan's discovery process begins with mandatory exchange of Verified Financial Information Forms (CC 320) within 28 days under MCR 3.206. Parties may then use formal discovery tools under MCR 2.305–2.310: up to 20 interrogatories (more allowed in domestic cases), depositions limited to seven hours per party, requests for production of documents, and subpoenas to third parties like banks and employers. Discovery must conclude by the court-ordered cutoff date, and parties have a continuing duty to supplement responses under MCR 2.302(E).