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In New Jersey, full financial disclosure in a divorce is required. Assets and debts cannot be equitably distributed during the divorce if they are not all identified, but spouses often hide assets to maintain financial control of the relationship. If your spouse knows you may be filing for a divorce, they may also hide assets to keep more money for themselves.
Rosenblum Law divorce attorneys have extensive experience with locating hidden assets in divorce. Through discovery, subpoenas, court orders, and partnership with forensic accountants, Rosenblum attorneys can find your spouse’s hidden assets so that they can be included in the divorce settlement. Contact us today for a free consultation, and keep reading for more information on identifying and uncovering hidden assets.
Identifying Signs That Your Spouse May Be Hiding Assets
There are some common red flags that someone’s spouse may be hiding assets. These can include, for example:
- Sudden changes in financial behavior, such as unexplained spending or opening new accounts
- An unexplained change in income or expenses
- Secretive financial practices or restrictions on access to financial information
There are also behavioral indicators of hidden assets, such as:
- A reluctance to share financial details
- Unusual or complex financial transactions
- Lifestyle inconsistencies, such as spending that doesn’t align with their known income
Legal and Financial Tools to Uncover Hidden Assets
A variety of financial and legal tools can be used to uncover hidden assets.
- Forensic Accounting: Forensic accountants use a variety of tools and software to track transactions and financial resources, such as financial statement analysis and data mining.
- Discovery Process: An attorney can use interrogatories, requests for production, and depositions to uncover hidden assets. It is important that discovery requests are thorough and detailed to compel the spouse to disclose financial information.
- Subpoenas and Court Orders: An attorney issue subpoenas to financial institutions to obtain financial records. The attorney can also obtain court orders for document production by the spouse hiding assets.
- Utilizing Technology: Software can be used to analyze electronic records and digital footprints. It can also be used to review online banking, email communications, and financial software.
How an Attorney Can Help if Your Spouse Is Hiding Assets
If one’s spouse is hiding assets, there are a number of ways that an attorney can assist.
- Legal Strategy and Advice: The attorney will craft a strategy to uncover hidden assets, which may include hiring forensic accountants. They can also provide legal guidance throughout the process.
- Collaboration with Financial Experts: Experienced divorce attorneys have partnerships with forensic accountants and financial investigators to discover hidden assets. The attorney can coordinate efforts between these individuals to maximize asset discovery.
- Negotiation and Litigation: An attorney can represent their client during negotiations and litigation by leveraging discovered assets in settlement negotiations. They can also represent their client’s interests in court to ensure fair division of assets in the equitable distribution process.
- Enforcement of Court Orders: An attorney can help ensure compliance with court orders related to asset disclosure. There is legal recourse if a spouse continues to hide assets, including asking a court to hold them in contempt.
Steps to Take If You Suspect Asset Hiding
There are several steps someone should take if they suspect their spouse is hiding assets.
- Gather Information: Collect and organize financial documents. Keep detailed records of financial transactions and communications with financial institutions.
- Seek Legal Advice: Consult with an experienced divorce attorney to discuss potential legal action, such as filing requests for production and issuing subpoenas.
- Hire a Forensic Accountant: A forensic accountant can identify discrepancies and potential hidden assets by tracing financial transactions to their source.
FAQs
Some common methods used to hide assets during a divorce include hiding cash in safety deposit boxes, buying new assets that can be resold after the divorce, and setting up asset protection trusts that are returned after the divorce. You might also set up individual bank accounts or overseas banks with secrecy laws. A spouse who owns a business can also use that business to hide assets.
A forensic accountant can trace financial transactions back to their source to identify any hidden accounts. They can also track down trusts and other financial instruments used to hide assets. An attorney who specializes in divorce law is also highly recommended for uncovering your spouse’s assets.
Legal actions include issuing subpoenas for production of financial documents from financial institutions and court orders for production of documents by the other spouse. An attorney can assist in filing for these subpoenas and court orders.
This varies depending on the tools needed by the forensic accountants. It can take additional time to petition the court for subpoenas and court orders. Discovery can take 3-6 months depending on the level of hidden assets. The cooperation of your spouse will also affect how long the process takes.
It may be difficult to access your spouse’s financial records without their knowledge, unless it’s a joint account. This is because banks and financial institutions will only work with the account holder. However, a forensic accountant can track assets and accounts without their permission.
A spouse who is caught hiding assets is put at a disadvantage in negotiations and court proceedings for asset division. If the court orders that they produce financial records and they do not, they could be held in contempt. Other consequences may include legal penalties or adjustments to the asset division.
Hidden assets affect the outcome of the divorce settlement because all assets are required to be divided equitably during a divorce. If hidden assets are discovered after the divorce is final, a motion to modify the divorce decree is required to compensate for those assets.
A forensic accountant costs between $300-500 per hour, and it can take several hours of work to discover hidden assets.
If you find hidden assets after the divorce is finalized, you can have your attorney file a motion for modification of the divorce decree based on the found assets.
Be proactive in your financial health to avoid not knowing about your spouse’s assets. Be active in financial decisions with your spouse and talk to them frequently about finances. If they refuse to discuss these matters with you, it is likely they are hiding assets.
Contact Rosenblum Law Today
It is important to uncover hidden assets for a fair and equitable divorce decree. Ensuring full financial disclosure is upheld by your spouse will guarantee that if you do get divorced, you receive your fair share of the division of assets. The role of legal and financial professionals in ensuring a fair settlement cannot be overstated. Forensic accountants, attorneys, and financial planners are all necessary when going through a divorce.
Rosenblum Law divorce attorneys are experienced and skilled in successfully discovering hidden assets in a divorce. Contact us today for a free consultation.
Last updated: Oct 15, 2024
