If you are going through a divorce, don’t assume your spouse will be forthcoming about their finances. Many divorces involve some level of asset concealment, and it can seriously affect the outcome of the settlement.
Hidden assets in a divorce can include anything from undeclared bank accounts to secret real estate holdings or business interests. When your spouse tries to conceal such assets that are subject to division, you could end up getting less than you deserve.
Tips for spotting hidden assets
Recognizing hidden assets is the first step toward ensuring you receive a fair divorce settlement. While it’s not always easy to uncover concealed property or funds, these red flags could point to financial dishonesty.
- Unexplained financial behavior
- Changes to financial accounts, such as irregular transfers
- Omitted information in financial statements
- Unusual gifts or loans
Some people go to great lengths to conceal marital assets, so you might need to hire a forensic accountant to trace any discrepancies and uncover hidden assets.
The legal consequences of hiding assets
It helps to understand that hiding assets during divorce is illegal. If your spouse is caught concealing assets, the court may impose penalties or award you a larger portion of the marital estate to compensate for the loss. In some cases, intentionally hiding marital assets can even result in criminal charges for contempt of court.
Protect your financial interests in a divorce
If you’re concerned about hidden assets, start by gathering relevant financial records. These may include bank statements, tax returns and credit card records. You want solid evidence of your claims, not just relying on mere suspicions.
It’s important to seek legal guidance at the onset of your divorce to avoid getting short-changed and increase the chances of securing a fair settlement as you close that chapter of your life.