Finding hidden assets is important when divorcing. Doing so means that property and financial resources can be divided fairly. Hidden assets take on many forms, including properties or financial resources that one spouse hides from the other. In many cases, this is done to secure a better outcome for themselves in the divorce settlement.
Understanding hidden assets can help you understand the importance of finding these before filing for divorce.
Common types of hidden assets
Hidden assets can take many forms, including undisclosed bank accounts, real estate or investments. Sometimes, a spouse might underreport income, overstate debts or transfer assets to a third party, such as a friend or family member, to keep them out of the marital estate. Other examples include hidden retirement accounts, offshore accounts or the undervaluation of business interests.
Red flags to watch for
Certain behaviors can indicate the presence of hidden assets. These include sudden changes in financial habits, such as a decrease in salary without explanation or the opening of new bank accounts. Unusual expenditures or financial transactions, like large purchases or loans to friends or family members, can also be warning signs. Additionally, if your spouse is secretive about financial matters or has a history of dishonesty, it may be worth investigating further.
Steps to uncover hidden assets
If you suspect that your spouse is hiding assets, there are several steps you can take. First, gather as much financial documentation as possible, including tax returns, bank statements and credit card bills. A forensic accountant can be invaluable in tracing assets and uncovering discrepancies in financial records. Legal tools like subpoenas can compel third parties, such as banks or employers, to provide information about your spouse’s finances.
Uncovering hidden assets is essential to achieving a fair divorce settlement. By remaining vigilant and utilizing the appropriate legal and financial resources, you can ensure that all assets are accounted for during the divorce process.