What if My Spouse Is Hiding Assets During Our Divorce?

When you are going through a divorce, you need to have an accurate understanding of the money and property that may be at stake. Unfortunately, some spouses attempt to gain an unfair financial advantage in their divorce by hiding bank accounts, transferring property, underreporting income, or otherwise making it appear as though certain marital assets do not exist. If you believe this is happening in your case, you most likely have several questions about your rights and what can be done. Please continue reading and contact a knowledgeable Atlantic County divorce lawyer to learn more about hidden assets and how an attorney can help protect your financial interests going forward. Here are some of the questions you may have:

Is It Legal to Hide Assets From a Divorce?

No, it is not legal for your spouse to intentionally hide assets during your divorce. Both spouses are expected to provide complete and truthful information about their income, property, debts, expenses, investments, and other relevant financial matters.

As part of the divorce process, each spouse may be required to complete a Case Information Statement. This document provides a detailed overview of that spouse’s financial situation, and the person signing it certifies that all known assets, liabilities, and sources of income have been disclosed.

That being said, there are several ways in which someone may attempt to conceal assets. Some of the most common are as follows:

Transferring money to a friend or relative
Keeping funds in an undisclosed bank account
Delaying a bonus, commission, raise, or business payment
Purchasing expensive property that can be sold after the divorce
Underreporting income from a business
Concealing cryptocurrency or online investments
Falsely claiming that marital funds were spent or lost

You should also note that simply placing an asset in only one spouse’s name does not automatically make it separate property. If the asset was acquired during the marriage, it may still be subject to equitable distribution.

What Are Some Warning Signs a Spouse Is Hiding Assets?

Rather obviously, it can be difficult to determine whether your spouse is actually hiding money, especially if he or she was primarily responsible for handling the household finances during your marriage. However, certain changes or inconsistencies may indicate that you should take a closer look. Potential warning signs of hidden assets can include:

Bank statements or other financial mail suddenly disappearing
Unexplained withdrawals, transfers, or purchases
Financial accounts that you do not recognize
Claims that a profitable business is suddenly losing money
Large payments made to relatives, employees, or unfamiliar individuals
Tax returns that do not reflect the standard of living you maintained
Unusual debts or inflated business expenses
Resistance to providing records during discovery
Passwords being changed on financial accounts
Conflicting explanations about where money went

Of course, one unexplained transaction does not necessarily mean your spouse is hiding assets. However, if you notice an ongoing pattern of secrecy, missing documents, or inconsistent explanations, you should bring your concerns to your attorney.

You should preserve any financial records that you are legally permitted to access, such as tax returns, account statements, property records, loan applications, and business documents. You should not attempt to access password-protected accounts without authorization.

What Can the Court Do if My Spouse Is Hiding Assets During Our Divorce?

Fortunately, there are several ways in which hidden assets can potentially be uncovered during a New Jersey divorce. Through the discovery process, your attorney may request financial documents, submit written questions, issue subpoenas, conduct depositions, and, in more complex cases, work with a forensic accountant. If the court determines that your spouse intentionally concealed assets, it may:

Order your spouse to provide the missing information
Impose financial sanctions
Require your spouse to pay certain attorney or expert fees
Consider the misconduct when distributing marital property
Draw negative conclusions from missing or withheld evidence
Revisit an agreement or judgment obtained through fraud, when permitted

Ultimately, the action taken will depend on what was hidden, how the concealment affected your divorce, and when the asset was discovered. The bottom line is that if you believe your spouse is hiding money or property, you should speak with an experienced New Jersey divorce lawyer as soon as possible. Contact the Law Office of Stephanie Albrecht-Pedrick, LLC today.