If you and your spouse are separating, divorcing or are struggling in your marriage and you suspect that your spouse may be hiding assets, it is important to take discreet action to safeguard your rights. Although full financial disclosure is required in divorce proceedings, not all individuals honor the letter and spirit of the law. Others hope that if they hide or otherwise do damage to their shared assets before filing, this will somehow be okay in the eyes of a judge.
Hiding assets is not only dishonest—it is also illegal. Fortunately, there are common ways to investigate if you think your spouse is trying to conceal property or income in advance of a split or potential split.
Searching high and low
Start with bank accounts. If your spouse handles most of the finances, request copies of bank statements – from the institution(s) at issue, not your spouse – going back at least a year or two. Look for large or unexplained withdrawals, transfers to unfamiliar accounts or unusually low balances that do not match your household expenses or income. Sometimes, hidden accounts are opened at entirely new institutions to avoid detection.
Review credit card statements. These records can reveal hidden spending or the purchase of assets not disclosed in the divorce. If your spouse is buying luxury goods, travel or gift cards and those items are not being shared or disclosed, it may signal financial dishonesty. Gift cards, in particular, can be used to store and later convert money.
Business interests are another common place to hide assets. If your spouse owns a business or has control over financial records at work, they may manipulate income or delay payments. They might suddenly pay back fake debts, report false expenses or underreport income. Reviewing business tax returns and invoices with the help of a forensic accountant can help uncover these tactics.
Do not overlook digital assets and investment accounts. Digital holdings, online payment accounts and overlooked retirement accounts can be easy to conceal if you do not know to check them. Tax returns also often provide useful leads. Look for interest or dividend income from unknown sources or deductions related to property or assets you have never seen. These clues may point to accounts or investments your spouse has not revealed.
If something feels off, trust your instincts. With experienced legal support, you can uncover the truth and protect your rightful share of your marital estate accordingly.