What to Do When a Spouse Hides Assets During Divorce

Divorce & Family Law Resources

Going through a divorce can be a challenging and emotional experience, especially when you suspect your spouse is hiding assets. Financial deception can complicate the process, leading to an unfair division of property. If you believe your spouse is concealing assets during your divorce, it’s crucial to take immediate action to protect your financial interests. Here’s what you need to know and do to uncover hidden assets and ensure a fair resolution.

1. Recognize the Signs of Hidden Assets

The first step is to identify potential signs that your spouse might be hiding assets. Some common indicators include:

Unexplained changes in financial accounts: Look for unexplained withdrawals, transfers, or changes to bank accounts or credit cards.

Secretive behavior: Your spouse may become unusually secretive about finances, or they may have hidden accounts that are hard to trace.

Unexplained purchases: They might make significant purchases or investments that don’t seem to align with their reported income.

Offshore accounts: In some cases, assets are hidden in offshore bank accounts, which can be harder to track.

2. Gather Documentation and Evidence

Once you suspect that assets are being hidden, it’s important to gather as much documentation as possible. This will be critical in uncovering hidden assets and protecting your share of the marital property.

Review financial documents: Collect tax returns, bank statements, credit card statements, loan applications, and any other financial documents that can reveal inconsistencies or unusual transactions.

Look for hidden accounts: If you believe your spouse has hidden assets in other accounts, look for signs of new credit cards, personal loans, or joint accounts you weren’t aware of.

3. Hire a Forensic Accountant

If you believe your spouse is hiding assets, a forensic accountant can help. These professionals specialize in investigating financial matters and uncovering hidden assets. They can track down discrepancies in financial records, analyze bank statements, and even locate hidden investments or accounts.

Valuation of assets: A forensic accountant can help ensure that all marital assets are properly valued, especially when it comes to complex assets like business interests or real estate investments.

Tracing missing funds: They can also trace funds that were moved or withdrawn to offshore accounts, shell companies, or hidden bank accounts.

4. Work with Your Divorce Attorney

It’s essential to have an experienced divorce attorney who is well-versed in asset division and financial fraud. Your attorney can:

Request full financial disclosure: If your spouse is not forthcoming with financial information, your attorney can formally request full financial disclosure and subpoena any relevant documents.

File a motion for discovery: If you believe your spouse is withholding information, your attorney can request that the court compel your spouse to provide detailed financial information.

Challenge unfair asset division: Your attorney will ensure that your spouse’s actions don’t result in an unfair division of assets by negotiating a fair settlement or fighting for a fair division in court.

5. Protect Your Assets

During this process, it’s important to protect your own assets. If you suspect hidden assets, take proactive steps to secure your financial future.

Freeze joint accounts: If you fear that your spouse may withdraw money or transfer funds, you may want to freeze joint bank accounts temporarily (in consultation with your attorney).

Monitor credit: Keep an eye on your credit reports for any signs of unusual activity, such as new accounts or loans opened in your name.

Separate your finances: If you haven’t already, it’s wise to open individual accounts for your own financial security. This way, you can ensure that your money isn’t being mixed with your spouse’s hidden assets.

6. Take Legal Action If Necessary

If your spouse continues to hide assets or refuses to disclose financial information, you may need to take legal action. In some cases, the court may impose sanctions or penalties against a spouse who engages in financial fraud or asset concealment. The consequences of hiding assets during divorce can include:

Penalties: The court may award a larger share of the marital assets to the other spouse as a penalty for dishonesty.

Criminal charges: In extreme cases, hiding assets could result in criminal charges for fraud.

7. Stay Focused on Fairness

While it may be frustrating, it’s essential to stay focused on securing a fair and just resolution to your divorce. By following the proper steps and working with the right professionals, you can uncover hidden assets and ensure that you receive your fair share of the marital property. Call Attorney Michael Capleone for a consultation.

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Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Every case is unique. For legal guidance tailored to your situation, please consult an experienced family law attorney licensed in your state.