Is Your Spouse Hiding Assets During Divorce?

Divorce is rarely an easy process. It's a period of emotional upheaval and complex legal procedures that can become even more challenging when financial matters are involved. In some cases, one spouse might suspect that the other is hiding assets to gain an unfair advantage during the divorce proceedings. While it's a distressing thought, understanding the signs of hidden assets and the steps you can take to address the issue is crucial for ensuring a fair division of marital property.

The Red Flags

Detecting hidden assets can be difficult, as individuals who engage in this behavior often take deliberate steps to obscure their financial activities. However, there are several red flags that might indicate your spouse is attempting to hide assets:

• Unexplained Financial Discrepancies: If you notice inconsistencies in your spouse's financial documents or bank statements, it could be a sign that something is amiss. This might include missing funds, unusual transactions, or money transfers to unfamiliar accounts.
• Sudden Decrease in Income: Your spouse might claim a decrease in income, whether through their job or business, which could lead to lower spousal support or alimony payments. This might involve underreporting bonuses, delaying commissions, or even quitting a job temporarily.
• Transferring Assets: If your spouse begins transferring large sums of money or valuable assets to friends, family members, or even offshore accounts, it could be an attempt to keep these assets out of the divorce settlement.
• Overpaying Taxes: Some individuals intentionally overpay their taxes in the year leading up to the divorce, hoping to claim a refund later on when the divorce is finalized and the assets are safely hidden.
• New Loans or Debt: Taking on new loans or debt shortly before or during the divorce might be a way to offset the value of marital assets, making them appear less valuable than they truly are.
• Unexplained Expenses: Keep an eye out for significant unexplained expenses or extravagant purchases that don't seem to align with your spouse's reported income.
• Hidden Accounts: Your spouse could have secret bank accounts, brokerage accounts, or other financial instruments that you're unaware of. These accounts might be under a different name or kept offshore to avoid detection.

7 Steps to Address the Issue

If you suspect your spouse is hiding assets, it's important to approach the situation carefully and strategically. Here are some steps you can take:

1. Consult with an Attorney: The first and most crucial step is to consult with an experienced divorce attorney who specializes in complex financial cases. They can provide you with legal guidance, help you understand your rights, and strategize on how to uncover hidden assets.
2. Gather Financial Documentation: Start collecting all financial documents that might be relevant to your case. This includes bank statements, tax returns, investment account statements, property deeds, and business records.
3. Engage Financial Experts: In some cases, it might be necessary to hire financial experts, such as forensic accountants, to uncover hidden assets. These professionals have the expertise to trace financial activities and find discrepancies.
4. Issue Subpoenas: Your attorney can issue subpoenas to banks, financial institutions, and other relevant parties to obtain necessary financial information. This legal tool can help uncover hidden accounts or transactions.
5. Use Discovery Procedures: Discovery is a legal process that allows both parties in a divorce to request information and documents from each other. Through interrogatories, requests for the production of documents, and depositions, you can compel your spouse to disclose their financial activities.
6. Monitor Social Media and Public Records: People sometimes inadvertently reveal financial information on social media or public records. Keep an eye out for any posts or information that might contradict your spouse's financial claims.
7. Stay Patient and Persistent: Uncovering hidden assets takes time and persistence. Be prepared for a potentially lengthy process, and don't give up if you encounter obstacles along the way.

The Importance of Fairness

Divorce is not just a legal process; it's an emotional journey that can impact individuals and families for years to come. While the temptation to hide assets might arise from various motivations, it's essential to remember that a fair division of marital property is crucial for both parties' financial stability post-divorce. Engaging in dishonest practices not only undermines the legal process but also damages trust and hinders the ability to move forward.

If you suspect that your spouse is hiding assets during a divorce, it's important to address the situation proactively and strategically. Our legal team at DeTommaso Law Group can help you uncover the truth and ensure a fair distribution of assets. Remember, divorce is a challenging time, but with the right support and guidance, you can navigate the complexities and protect your financial future.

Contact us today at (908) 274-3028 to learn how we can help you.