What if My Spouse is Hiding Assets?

How Can You Tell If Your Spouse is Hiding Assets?

There are several signs that may indicate financial deception. One of the most common red flags is a sudden decrease in the amount of money in joint accounts without any clear explanation. Additionally, if your spouse is unusually secretive about financial matters, or insists on handling all the financial responsibilities alone, it could be cause for concern.

Changes in spending habits are another indicator. For instance, if your spouse starts making large purchases or significant withdrawals without informing you, it might be worth investigating further.

Moreover, unexplained transfers of money to friends or family members can be a method of hiding assets.

Lastly, monitoring any drastic changes in income reporting is also essential. This is especially true for closely-held businesses. Some spouses elect to “harbor” funds within a business entity, with the hopes that it will appear their income is lower than reality.

What Legal Actions Can You Take to Uncover Hidden Assets?

If you suspect that your spouse is hiding assets, there are several legal avenues available to uncover the truth. One of the first steps is to work with a skilled divorce attorney who has experience in handling cases involving hidden assets. Your attorney can issue a formal discovery request, which is a legal process used to gather detailed information about your spouse’s financial situation. Your attorney also can use the power of subpoena to obtain records from employers and financial institutions. These record requests can cover items such as financial institution statements, tax returns, and business records.

In some cases, it may be necessary to hire a forensic accountant, or even a private investigator. These professionals specialize in tracking down hidden assets by examining financial records and transactions. They can identify discrepancies and uncover assets that may not be immediately visible.

Additionally, depositions are a powerful tool in the discovery process. During a deposition, your spouse is required to answer questions under oath, and any inconsistencies in their testimony can be used to challenge their credibility.

Combining the above-mentioned legal strategies increases the chances of uncovering hidden assets and ensuring a fair division of property.

What Are the Consequences of Hiding Assets During a Divorce?

Hiding assets during a divorce can lead to severe legal consequences for the spouse attempting to deceive the court. If the hidden assets are discovered, the court may impose penalties, including awarding a larger portion of the marital estate and/or all of the concealed asset to the innocent spouse. In some cases, the court may order the payment of attorney’s fees and other costs incurred due to the misconduct.

It’s also worth noting that hiding assets can severely damage the deceptive spouse’s credibility in the eyes of the court, which can affect other aspects of the divorce proceedings, such as child custody and alimony decisions.

Aside from the legal repercussions, hiding assets can also have long-term financial and emotional consequences. The strain of maintaining deceitful practices can lead to increased stress and anxiety. Additionally, if children are involved, and the deception is uncovered, it can further damage the trust and cooperation needed to co-parent effectively.

If you have any additional questions about what may be involved with uncovering hidden assets, please don’t hesitate to contact the Law Offices of Eric R. Posmantier, LLC today.