If you are going through a divorce or other family law matter where you need your spouse’s cooperation regarding financial information, hidden assets may come into play.
These cases are difficult enough without a spouse obstructing you from having the financial information you need to make informed decisions about your future.
If you suspect your spouse is hiding assets, you do have legal options. A lawyer can guide you through the process.
What Are Hidden Assets?
During a Florida divorce, both spouses are required to provide financial disclosures to the other about their property, income, and liabilities. If a spouse does not disclose the existence of the asset or intentionally keeps it from the other spouse, it is a hidden asset. While hidden assets can be involved in any divorce, they are more common in high net-worth divorce cases.
Hidden assets can take many forms, including:
- Money
- Bank accounts
- Cryptocurrency
- Investments
- Business interests
- Vehicles
- Real estate
- Valuable property, such as collections, jewelry, or artwork
An experienced divorce attorney can help uncover these hidden assets.
Signs a Spouse May Be Hiding Assets
Spouses may try to hide assets because they don’t want to share property they consider their own. They try to get an uneven split of the property by hiding assets. If your spouse has expressed statements about their “money” or “property,” they may have this skewed thinking, and you should actively look for signs of deceit during your divorce.
Some common signs of hidden assets include:
- A sudden change in financial behavior, such as a spouse suddenly being very guarded about property when they were previously transparent
- Inconsistencies between a spouse’s reported income and their lifestyle
- Statements from bank or investment accounts for accounts you were unaware of
- Recent large purchases
- Transfers or loans to third parties
- A new interest in finances, including cryptocurrency or offshore accounts, which are commonly used to conceal assets
If you notice these or other signs that your spouse might be hiding assets, contact an experienced attorney immediately.
How Assets Are Commonly Hidden During a Divorce
Divorcing spouses can be quite creative and motivated to hide assets. Some common ways they achieve this are by:
- Purchasing assets and hiding them in storage facilities or other locations away from the marital home
- Using safe deposit boxes to hide physical assets and documents related to them
- Transferring funds to offshore accounts
- Converting funds into cryptocurrency
- Setting up trusts or shell corporations
- Underreporting income or overstating expenses on tax returns
- “Loaning” money to friends or families
- Overpaying taxes, utilities, or other creditors
- Deliberately delaying receiving bonuses, commissions, or promotions
- Conspiring with appraisers or others to undervalue property
- Creating phantom employees to payroll and later reclaiming their salaries
These are just a few ways spouses can hide assets. Many go to great lengths to prevent their spouse from uncovering assets to help them obtain an equitable division of property.
Legal Consequences of Hiding Assets
When a spouse hides assets, they prevent the other spouse from being able to obtain a fair division of property and undermine the integrity of the legal process. An innocent spouse can wind up with a smaller division of the marital property than they are entitled to under the law. Hidden assets can also affect the award of and amount of spousal support and child support.
If you can prove your spouse is hiding assets, the court can adjust the division of property in your favor. Sometimes, the court may award you the whole value of the asset rather than just part of it as a way to punish the deceptive spouse. The court can also order your spouse to pay the attorney’s fees you incurred to track down the hidden assets. Once your spouse is found to have hidden assets, they can lose credibility with the court, which can affect all aspects of your case.
In some situations, a spouse who has hidden assets or lied in court can be found in contempt of court or charged with perjury. You should share your concerns with an experienced divorce lawyer for help.
How to Locate Hidden Assets
Locating hidden assets can be complex. It may require the use of lawyers and financial experts. Some ways to locate hidden assets might include:
Reviewing Financial Records
If you still have access to financial records, you can review them to find indications of hidden assets, incomes, or debts, such as:
- Titles and deeds
- Bank statements
- Mortgage statements
- Tax assessments
- Loan agreements
- Retirement account statements
- Investment account statements
- Tax returns
- Check stubs
- Company corporate records and financial statements
- Debt statements
- Safe deposit box inventories
- Life insurance policies
Checking Public Records
A lawyer can help check public records for indications of hidden assets. This could involve researching property records. It could also include reviewing court records, corporate filings, and business records. Special asset tracing software can search financial databases for additional information.
Hiring Forensic Accountants
Forensic accountants may be able to analyze financial records, identify inconsistencies, and trace assets. They can often uncover information that is more difficult for lay people to find on their own.
Issuing Subpoenas
An attorney can send subpoenas to financial institutions, businesses, and individuals to request financial records and information that may help reveal hidden assets.
Conducting Discovery
Your lawyer can use various discovery tools to obtain information about assets, including requests for the production of documents, interrogatories, and requests for admissions. They can also depose your spouse and others to get testimony under oath about essential financial information.
Interviewing Potential Witnesses or Accomplices
Your divorce attorney may speak to your spouse’s employer, friends, family, or other individuals your spouse may have told about the hidden assets or gave them to.
Contact a Family Lawyer for Help With Hidden Assets
If you suspect hidden assets are involved in your family law case, contact the Law Office Of Paulette Hamilton Divorce Lawyers for help. An experienced attorney can help track down these assets and fight for a fair outcome in court. Contact an experienced family law firm today at (407) 420-2311 to schedule a free consultation.
