Hidden Assets in Divorce: How to Spot Them and What to Do
Divorce proceedings rely on full financial disclosure from both parties, but some individuals attempt to conceal money or property to reduce what they must share. Hidden assets can distort the fair division of property, child support, and alimony. Unfortunately, many spouses try to hide assets during divorce, which can have serious consequences if discovered.
What Are Hidden Assets in Divorce?
Hidden assets are property, income, or investments intentionally concealed by one spouse during divorce. Common examples include:
- Undisclosed bank accounts or safe deposit boxes
- Cash businesses or underreported income
- Property transferred to friends or relatives
- Hidden investments or retirement accounts
Concealing assets is illegal. Courts require both spouses to provide full disclosure to ensure a fair division of marital property and accurate calculations for support obligations.
Why Do Some Spouses Hide Assets?
Spouses may attempt to hide assets to retain more property or reduce alimony or child support payments. Motivations can include financial fear, resentment, or a desire for control. Regardless of intent, concealing assets violates the law and undermines the fairness of divorce proceedings.
Common Signs a Spouse May Be Hiding Assets
Warning signs of hidden assets often appear through unusual financial behavior, such as:
- Sudden withdrawals or transfers of money
- Unexplained debts or missing bank statements
- Delayed receipt of bonuses or commissions
- Underreported income or unusual purchases
How Can Financial Records Reveal Hidden Assets in Annapolis?
Financial documents are key to uncovering concealed property or income. Careful review of tax returns, bank statements, business records, property deeds, and retirement accounts can highlight discrepancies between reported income and actual spending. Tracing transactions may uncover hidden accounts, money transfers, or undervalued assets.
Can Hidden Assets Include Business Ownership or Employment Income?
Spouses who own businesses or hold managerial positions have more opportunities to conceal income. Methods can include:
- Delaying payments or bonuses
- Falsifying business expenses
- Using company resources for personal benefit
- Receiving cash or side agreements not recorded officially
Legal Tools Used to Find Hidden Assets
Attorneys use several discovery tools to uncover hidden assets:
- Subpoenas: Compel banks, employers, or financial institutions to release records
- Depositions: Sworn questioning of the spouse about income or property
- Interrogatories: Written questions under oath requiring detailed responses
These tools can reveal inconsistencies and previously undisclosed accounts or transfers.
What Are Forensic Accountants?
A forensic accountant specializes in analyzing financial records, tracing transactions, and identifying irregularities that suggest asset concealment. They can reconstruct financial activity and provide expert evidence to support your case, helping attorneys build a clear picture of the true marital estate.
Legal Consequences of Hiding Assets in Divorce
Concealing property or income during divorce can lead to significant penalties, including:
- Fines and court-ordered reimbursement of hidden assets
- A larger share of the property awarded to the other spouse
- Perjury or fraud charges in severe cases
What Should You Do if You Suspect Hidden Assets?
If you suspect your spouse is hiding assets:
- Document irregularities and gather bank statements, tax records, and pay stubs.
- Consult an experienced divorce attorney immediately.
- Your lawyer can initiate formal discovery and, if necessary, hire forensic accountants or financial professionals to uncover missing information.
Timely action protects your right to a fair division of marital property and prevents further concealment.
Annapolis Divorce Lawyers at Oliveri & Larsen Will Help You Find the Hidden Truth
If you are facing divorce and believe your spouse is hiding assets, the Annapolis divorce lawyers at Oliveri & Larsen can help. Call 410-295-3000 or complete our online form to schedule a consultation. Our office in Annapolis, MD, serves clients throughout the surrounding area, providing skilled legal representation in complex divorce cases.