What To Do If Your Spouse Hides Assets During Divorce

Married couples should have trust in their partner, including trust involving financial matters. Most married couples combine their marital assets during their marriage. When one spouse handles most of the finances, they may try to hide assets in a divorce case. Hidden assets will mean you don’t get a fair division of property in a divorce.

Your spouse can face criminal charges for financial fraud during a divorce. If you suspect your spouse is hiding money, investments, or real estate, talk to a local divorce attorney.

Hiding Money to Prepare for Divorce

According to a survey for the National Endowment of Financial Education, almost 40% of spouses have committed financial deception. This includes hiding cash, purchases, bank statements, and credit card statements. When a relationship breaks down, some partners may try to hide assets to keep more money for themselves in a divorce.

In a divorce, the spouses divide up their assets through property division. Spouses generally keep their separate property but divide marital property. Property division depends on whether the state follows community property or equitable distribution.

Keeping money and assets out of marital estate allows one partner to keep more than their fair share.

How Spouses Hide Assets

When one spouse is in charge of household finances, hiding assets from their spouse can be easy. Ways to hide money or property include:

• Opening a bank account without the other spouse
• Opening a safe deposit box
• Opening accounts in a family member’s name
• Underreporting a bonus or salary increase
• Purchasing antiques, jewelry, or collectibles
• Undervaluing property or overstating liabilities
• Selling marital property without telling their spouse

Signs Your Spouse May Be Hiding Assets

There are possible red flags that your spouse is hiding assets in anticipation of divorce. Possible signs of concealed assets include:

• Spouse won’t let you see financial records
• Hides retirement account and credit card statements
• Keeps all financial documents in a locked drawer and won’t share access
• Claims they lost a bonus or raise at work
• Changes in spending habits
• Missing artwork or jewelry
• Spouse is having an extramarital affair and hiding assets to pay for the relationship

These are not evidence of hiding financial information. However, they give you a reason to examine your finances closely.

Legal Implications of Hiding Assets

If a spouse gets away with hiding assets, it can mean you get less money in a divorce. During the divorce process, the couple decides how to divide their property and who will care for the children. Divorcing spouses can decide on property division with a settlement agreement. If the couple cannot decide how to divide assets, the court will.

There are serious legal consequences when the court catches your spouse trying to hide assets from divorce proceedings. Hiding money is fraud, and your spouse could face perjury, contempt of court, and criminal charges.

Even after the divorce settlement, you can take action if you determine your spouse had hidden money. The family law court can impose sanctions or make them pay alimony/spousal support to make up for the hidden cash. Talk to your family law attorney to understand the legal implications of hidden assets.

Steps to Take if You Suspect Your Spouse Is Hiding Assets

Hiding assets is more difficult when both spouses handle finances. Learn about your financial situation and take an active role in budgeting with your spouse. If your spouse is secretive or does not want to share financial statements, they may be concealing assets.

Keep a close eye on your finances and monitor your bank accounts. Look for cash withdrawals, bank transfers, and higher-than-usual credit card payments.

Tell your divorce lawyer if you suspect your spouse is hiding assets during a divorce. Your divorce lawyer can use the discovery process to demand financial disclosures and other records. Your attorney can also use financial experts to audit and identify potential fraud.

The Role of Forensic Accountants

Your attorney can use forensic experts to track down financial assets hidden by your spouse. A forensic accountant can local well-hidden financial transactions that are hard for most people to detect. Through discovery, they can review your income tax returns and other statements and identify secret accounts in your spouse’s name.

A forensic accountant acts like a financial detective. After their investigation, they can provide an expert report and testify to the divorce judge. With this information, the judge can award a fair settlement and issue financial and criminal penalties to your spouse.

Legal Recourse and Remedies in a Divorce

Financial deception could indicate other problems in a marriage. Lying about finances could suggest issues with trust, communication, and fidelity. Intentionally hiding assets to keep them out of your divorce settlement is fraud.Identify any hidden assets with the help of your divorce lawyer. Your attorney can bring them to the court’s attention so your ex can’t get away with it. Contact a divorce lawyer for legal advice about how to handle your spouse’s hiding assets.