What Happens If My Spouse Hides Assets During Divorce?

Divorce is stressful enough without the added burden of financial dishonesty. If you suspect hidden assets, trust your instincts. Undisclosed finances can significantly impact your settlement and future. Please continue reading to discover how our determined Middlesex County Divorce Lawyers help uncover hidden assets during divorce proceedings. 

What Are the Signs My Spouse is Hiding Assets During Our Divorce?

If you suspect your spouse is concealing assets during a divorce, it’s crucial to investigate, as hidden assets can significantly impact your settlement. Equitable asset division relies on full disclosure of all assets. Here are some key indicators to watch for:

• Sudden financial secrecy
• Unusual business activity
• Lifestyle discrepancies
• Sudden debts or liabilities
• Changes in pay or bonuses
• Cryptocurrency or digital assets
• Missing financial records
• Withdrawing significant portions of money from joint accounts
• Excessive gifting
• Spending outside their financial means

How Can I Protect My Interests?

If you suspect your spouse is concealing assets, it’s crucial to act promptly to safeguard your financial well-being. Consider these proactive measures:

• Engage a Divorce Attorney: The attorneys at the Law Offices of Eyal Talassazan, P.C., are adept at identifying hidden assets and collaborating with financial experts to ensure complete financial transparency. Our legal team can assist you with filing subpoenas, requesting essential documents, and pursuing legal action when required.
• Retain a Forensic Accountant: An attorney can enlist a forensic accountant who possesses expertise in tracking funds, meticulously examining tax returns, and scrutinizing business records to pinpoint financial inconsistencies. Their services are especially valuable in situations involving business ownerships, offshore accounts, cryptocurrency, and stock portfolios.
• Compile Your Financial Records: Throughout the divorce proceedings, gather comprehensive documentation. This includes bank and credit card statements, tax returns for at least the past 3-5 years, investment account summaries, business financial statements, as well as pay stubs and employment records. It should be noted that the more evidence you accumulate, the easier it becomes to identify any discrepancies.
• Seek Court Intervention: If your spouse continues to withhold financial information or refuses to cooperate, the court has the authority to impose various legal sanctions. This may include hefty fines, imputation of income, and awarding a larger portion of marital assets to the spouse who acted honestly. A motion can be filed to compel disclosure or conduct depositions to ascertain the truth.

What Are the Legal Consequences of Asset Concealment?

In New Jersey, deliberately hiding assets during a divorce can lead to severe penalties. The courts view dishonest financial practices unfavorably. Potential consequences include:

• Contempt of court
• Sanctions or legal fees payable to the opposing party
• An unequal division of marital assets
• Criminal charges in instances of extreme fraud

The state mandates full financial disclosure during a divorce. This means that both parties must provide complete information regarding their assets, debts, and income to the court. Any attempt to manipulate this process undermines the legal fairness and can have significant adverse outcomes.