Asset division is often a challenging and tension-filled process during divorce. Hiding assets only makes everything more stressful and complicated for everyone involved. Unfortunately, some spouses still attempt to conceal high-value property or financial resources to take more than their fair share of the assets.
Recognizing the signs of hidden assets and knowing how to uncover them is crucial for protecting your interests and ensuring a fair asset division.
Red flags that may indicate hidden assets
Spotting hidden assets can be tricky. Still, certain behaviors may serve as potential warning signs that your spouse is concealing assets. Some of these are:
- Sudden creation of new accounts: Be wary of accounts opened in other banks, states or countries, which can be harder to trace.
- Changes in spending habits: Your spouse might start living more frugally while funneling assets to new accounts. Alternatively, they may buy expensive assets like antiques or artwork and underreport their value.
- Unexplained cash withdrawals: Large, frequent and secretive withdrawals without clear reasons suggest your spouse is transferring the money elsewhere.
- Alleged sudden decrease in income: If your spouse claims their income or business profits have suddenly dropped, but their lifestyle remains unchanged, it’s likely a red flag.
- Investments in unfamiliar businesses: Your spouse might funnel money into new ventures or real estate without your knowledge. It’s also possible these businesses are fraudulent and only made to hold their assets.
- Unusual cash gifts to friends or family: Large gifts or loans to friends or family members let your spouse temporarily move assets out of their name. They may intend to reclaim these funds after your divorce.
What to do if you suspect your spouse of hiding assets
Try to avoid confronting your spouse or accusing them of hiding assets. Instead, start investigating. Gather necessary financial documents like your bank statements, tax returns, credit card bills and more. It’s best to hire a forensic accountant to help you go over everything and flag suspicious activity.
Moreover, don’t hesitate to seek assistance from a legal professional. Your divorce attorney may help you request additional financial information during the divorce discovery process through depositions and similar means.
