Sadly, hidden assets in a divorce happen more often than spouses hope. California requires full financial disclosure during a divorce to help:
- Spouses understand the extent of the estate
- Judges understand the totality of the community estate
You and your spouse need to include all assets and debts that are owned in part or whole. If your spouse is hiding assets, it’s an emotionally filled moment. You deserve to exit the divorce with your fair share of assets, even if your spouse doesn’t think you have a right to certain assets.
We know that proving that your spouse is hiding assets is the last thing you expect to do during a divorce.
If you believe that your spouse might be hiding assets, we can help. We’ll work to uncover any hidden assets and guide you through this challenging time in your life.
Schedule your consultation with Wine Country Family Law to discuss your divorce.
What Are Typical Ways Spouses Might Try to Hide Assets in a Divorce?
You have assets that you know about – your home, autos, and items you purchased together. Spouses often share all of their purchases with each other, and if a major purchase is made, there’s a certain expectation that most spouses will share this information with each other.
But there are times when assets may be hidden, or the true worth may be hidden to avoid having to split them equitably with a spouse.
For example, you may know about your spouse’s business, but you don’t know the ins and outs of the operation. Your spouse may conceal income or inflate debts to cause the true value of the asset to remain hidden.
In this case, the hidden assets in a divorce can be substantial.
Other examples of ways that spouses may conceal assets are:
- Gifting money to someone who will return it to the spouse after the divorce.
- Creating trusts and putting assets into the trust that you don’t know about.
- Storing funds in hidden accounts or locations, such as creating an offshore account.
- Transferring assets to someone the spouse trusts with the understanding that the asset will be returned after the divorce is final.
- Purchasing cryptocurrencies that are more difficult to track.
- Overpaying debts in an effort to reduce the value of the estate.
- Delaying certain income, bonuses, promotions, or even sending large invoices until after the divorce.
- Creating a custodial account for a child and then removing the money after the divorce.
Hiding assets can be sophisticated with large estates and in circumstances where foreign accounts may be created to hide assets.
Forensic accounting may be necessary to uncover assets that have been hidden by a spouse. If you believe a spouse isn’t being truthful during a financial disclosure, it’s important to speak up.
What Do I Do If I Believe My Spouse Is Hiding Assets in Our Divorce?
If you believe that your spouse is hiding assets, there are several steps you can take to uncover the truth.
The first and most important step is to contact an experienced divorce attorney. An attorney can advise you on the best strategies for finding hidden assets, help you navigate the process, and ensure your rights are protected.
Contact us today to schedule a consultation.
Other steps you can take to uncover hidden assets include:
- Collecting financial documents. Gathering all of your financial paperwork will help you and your attorney determine where to start looking for hidden or missing assets.
- Keep an eye on your spouse’s spending. Monitor account activity and review canceled checks.
- Talk to trusted loved ones or business associates who may have knowledge of your spouse’s financial activities.
Uncovering hidden assets can be challenging, especially if you attempt to do it on your own. An experienced attorney will know where to look for hidden assets and help you proceed if you do find that your spouse is hiding assets.
What are My Rights If My Spouse is Hiding Assets?
Hiding assets is illegal and can result in severe consequences, such as:
- Forfeiture of the hidden assets
- Charges of contempt of court or perjury
The spouse hiding the assets may also be ordered to pay the other spouse’s attorney and legal fees associated with discovering the hidden assets.
What If My Spouse Is Hiding Assets in Their Business?
Business owners can use several tactics to hide marital assets in a business, such as:
- Paying a nonexistent employee.
- Making payments to family members or friends, who will “hold” the money for them until after the divorce is finalized.
- Delaying deals or underreporting income.
- Overpaying taxes.
- Undervaluing business assets.
Uncovering hidden assets in a business can be a highly complex process. Working with an experienced attorney is advised.
If you suspect that your spouse has hidden assets in a divorce, contact us today to schedule a consultation and discuss your options.
