Divorce can sometimes bring out the worst in people. Unfortunately, it isn’t surprising that some spouses resort to dishonest tactics, such as hiding assets, to gain an unfair advantage during the proceedings. If you suspect your spouse may be concealing assets, it’s crucial to be vigilant and aware of potential warning signs.
Here are some common indicators that may suggest your spouse is hiding assets during a divorce.
Sudden Financial Changes
One of the first signs that your spouse may be hiding assets is a sudden and unexplained change in their financial behavior. This could include opening new bank accounts, making significant cash withdrawals, or transferring funds to undisclosed or offshore accounts. Pay attention to any unusual financial activity or unexplained depletion of joint assets, as these could be red flags indicating an attempt to conceal wealth.
Discrepancies in Financial Documents
During divorce proceedings, both parties are required to disclose their financial information. If you notice discrepancies between the financial documents provided by your spouse and what you know to be true, it could be a sign of hidden assets. Look for inconsistencies in bank statements, tax returns, business records, and investment portfolios. Seek professional assistance, such as a forensic accountant or a divorce attorney, who can help identify and investigate any irregularities.
Valuables and Assets Go Missing
If valuable assets suddenly disappear from your marital home or if your spouse claims to have sold or given away significant items without your knowledge, it may be an attempt to hide assets. Keep an inventory of valuable possessions, including artwork, jewelry, vehicles, and antiques, to ensure transparency during the divorce process. If any items mysteriously vanish, document the details and bring it to the attention of your legal counsel.
Unusual Business Practices
If your spouse owns a business, pay close attention to any suspicious behavior. Some individuals may underreport income, inflate expenses, or overpay debts to create the appearance of lower profits. Be cautious if your spouse suddenly alters their business structure, changes bank accounts, or hides financial transactions related to the business. Consulting with a forensic accountant who specializes in business valuation can help uncover any deceitful practices.
Complex Asset Transfers
Another sign of hidden assets can be the complexity of asset transfers. If your spouse begins transferring properties or other assets to friends, family members, or business partners, it could be an attempt to shield those assets from division in the divorce. Pay close attention to any unusual real estate transactions, changes in ownership, or the establishment of trusts that could potentially conceal assets.
Divorce is a time of emotional stress, but it is crucial to maintain a watchful eye on financial matters. While these signs do not guarantee that your spouse is hiding assets, they should raise your suspicions and prompt further investigation. Consult with a skilled New Jersey divorce attorney who can help you navigate the complex financial aspects of your divorce and potentially bring in the expertise of forensic accountants or other professionals. Remember, transparency and honesty are essential in ensuring a fair and equitable division of assets during divorce proceedings.
