Divorce is an emotionally challenging and complex process, especially when it involves dividing assets between spouses. Trust is often tested during this period, and unfortunately, some individuals may resort to dishonest practices such as hiding assets to gain an unfair advantage in the divorce settlement.
Discovering that your spouse may be concealing assets can be a distressing revelation, but it's crucial to address the issue promptly to ensure a fair distribution of property and finances.
Sudden Changes in Financial Behavior
One of the first indicators that your spouse may be hiding assets is a sudden and unexplained shift in their financial behavior. If your spouse starts to make substantial cash withdrawals or transfers money to unknown accounts, it could be a sign that they are attempting to move and hide assets from the marital estate. Additionally, if they start to display a lavish lifestyle while claiming financial difficulties, it could raise suspicion.
Complexity in Financial Records
During the divorce process, both parties are required to disclose their financial records and assets honestly. However, if your spouse becomes evasive or uncooperative when providing financial information or presents excessively complex financial records, it might be a deliberate attempt to obscure the truth. Look out for incomplete or inconsistent financial disclosures, as they may signify hidden assets.
Concealing Offshore Accounts
Offshore accounts can be used as a tool to hide assets, making it harder for you to track and assess your spouse's actual financial holdings. If you suspect that your spouse has offshore accounts or international investments that haven't been disclosed, it's essential to work with a skilled attorney who can investigate and uncover any hidden assets.
Unexplained Decrease in Income
Another tactic employed to reduce the value of assets is artificially decreasing one's income. Your spouse might take a lower-paying job, decline bonuses, or delay promotions to diminish the overall value of the marital estate. If there is no valid reason for a significant reduction in their income, it could be a warning sign of hidden assets.
Transferring Assets to Friends or Family
Your spouse may try to transfer assets to close friends or family members temporarily during the divorce process to avoid equitable distribution. These individuals might hold the assets until the divorce is finalized and then return them afterward, leaving you with a diminished share of the marital property.
High Cash Expenditures
Unexplained cash expenditures could be a strong indication of hidden assets. If your spouse starts to spend large sums of cash on seemingly trivial or non-essential items, it may be an attempt to dissipate assets and reduce the value of the marital estate.
Business Shenanigans
If your spouse owns a business, they might use it as a means to hide assets. They could overstate business expenses, undervalue the company, or even transfer assets to the business to shield them from division during the divorce.
Let Our Firm Protect Your Rights & Assets
Divorce is already an emotionally draining process, and discovering that your spouse may be hiding assets can add further stress and complexity. If you notice any of the warning signs mentioned in this blog, it is essential to consult with an experienced divorce attorney who can help you investigate and address the situation appropriately. Honesty and transparency are vital during divorce proceedings to ensure a fair distribution of assets and finances. Remember, seeking legal advice and assistance will not only protect your interests but also provide the guidance needed to navigate through this challenging phase of life.
At Blood Law, PLLC, we understand the complexities surrounding hidden assets in divorce cases. Our team of experienced attorneys is dedicated to helping you uncover the truth and protect your financial interests.
Contact us today to schedule a consultation.
FAQs
Bank account statements: These statements will provide valuable information about your spouse's income, regular expenses, and whether unusual deposits or withdrawals were made. Bank statements will also show whether a large sum of money was used to purchase real estate or other assets in your spouse's name only.
How to find out if a spouse has hidden assets? ›
How to find money hidden by spouse
- Assist in compiling an inventory of the marital estate. ...
- Run credit reports and do a forensic analysis of financial accounts. ...
- Hire forensic experts to take a deeper dive into more complex financial matters.
These changes in behavior might include a sudden reluctance to share details about finances, a refusal to allow access to joint accounts, or a sudden change in passwords for online banking and investment accounts. Such behavior can raise red flags and should prompt you to take action.
How to find out if a spouse has a hidden bank account? ›
There are several methods to find hidden bank accounts, such as:
- Conducting online asset searches.
- Hiring a private investigator.
- Making legal requests for financial information.
- Utilizing state-sponsored websites and resources.
To uncover hidden assets, start with a thorough search of bank accounts. Look for accounts in both your name and your spouse's name. Hidden bank accounts are a common way to conceal assets. A forensic accountant can help trace where money has been moved and identify any undisclosed accounts.
Can I have a secret bank account my husband doesn t know about? ›
Legally speaking, there is nothing wrong with having a separate bank account. You aren't required to keep joint accounts or file joint tax returns. You aren't even required to legally tell your spouse about your secret account, that is, until divorce proceedings start.
How do you do an asset search on someone? ›
An asset search, also known as an asset analysis or asset investigation, is performed by searching public and private records to confirm information such as the asset owner, the history of the asset, business due diligence, or someone's current and past location.
What is financial infidelity in a marriage? ›
Financial infidelity is a term many people are not familiar with, but it can have serious consequences in marriages and relationships. Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases.
How do I protect my assets from my husband? ›
Many people protect their assets by putting them into a trust before getting married. Some couples sign prenuptial agreements that detail financial obligations and distribution of assets in the event of a divorce. Sometimes, situations change and a postnuptial agreement is signed during the marriage.
Why is my husband secretive about money? ›
Resentment. Income inequality in a marriage can breed resentment. If your spouse earns less money than you, he or she may hide money or spend it in secret in retaliation for what he or she perceives as controlling behavior on your part.
Bank tellers can technically access your account without your permission. However, banks have safety measures in place to protect your personal data and money because account access is completely recorded and monitored.
How to find a hidden trust fund? ›
4 Places to Look for Trust Documents
- Check the offices of the estate planning attorney and accountant.
- Find it in a safety deposit box or safe.
- Ask people who were close to the decedent.
- Check the decedent's home, office and car.
The best way to monitor your bank account history is to review your ChexSystems reports and credit reports. If you believe someone has opened an account in your name, contact the bank or credit union, report the fraudulent activity and consider placing a credit freeze to prevent additional damage to your identity.
How can I prove my husband is hiding money? ›
The following documents may help you find hidden assets:
- Income tax returns: Obtain copies of income tax returns from the past few years. ...
- Bank account statements: These statements will provide valuable information about your spouse's income, regular expenses, and whether unusual deposits or withdrawals were made.
It is illegal to hide assets during a divorce. In divorce proceedings, both parties are legally required to disclose all their assets and liabilities fully and truthfully. This disclosure is crucial for the equitable division of property and to ensure a fair settlement.
What happens when a spouse hides money during a divorce? ›
Contempt of Court: If a spouse is found to have hidden assets, they may be held in contempt of court. This can result in fines, sanctions, or even jail time. Perjury Charges: If a spouse lies under oath about the existence or value of assets during divorce proceedings, they can face perjury charges.
Can I sue my husband for hiding money from me? ›
If it is proven that your spouse is hiding assets, the court will take appropriate steps to rectify the situation. You may be awarded a larger share of the marital assets, and, in some cases, your spouse may be required to pay your legal fees.
How to find out if your spouse is cheating without them knowing? ›
How to find out your partner is cheating online? – Here's what you can do!
- Check Dating Sites and Apps. ...
- Look For Suspicious Social Media Accounts Activity. ...
- Keep an Eye on Mobile Devices. ...
- Review Browsing History. ...
- Watch for Changes in Behavior. ...
- They Become Protective of Devices.
But, as challenging as uncovering these assets may seem, there's a specific group of professionals equipped to handle such intricacies: forensic accountants. These financial detectives specialize in combing through intricate financial records to detect anomalies and hidden treasures.
