Divorcing spouses must complete and exchange a sworn statement of net worth under New York law. Transparent financial disclosure ensures fair property division and support. Unfortunately, it’s not uncommon for people to hide assets when going through a divorce.
A few signs can help you identify if your spouse has not included crucial information on the financial disclosure. These include:
Financial discrepancies
If your spouse reports unexplained drops or delays in income, bonuses, commissions or freelance earnings, they may be delaying client billing cycles/invoicing or postponing bonuses/commissions until the divorce is finalized.
If they own a business and report revenue or profit drops before the divorce, they may be inflating business expenses, pushing client billing or overpaying taxes to lower the company’s net profit on paper.
Document discrepancies
Inconsistencies on the documents your spouse submits can help you know whether they are hiding assets. For example, when figures on the sworn Statement of Net Worth do not match those on pay stubs, tax returns or bank statements.
You should also take action when you notice a document has not been submitted. Or when a submitted document is missing a timeframe. For instance, bank statements with unexplained gaps or missing pages. Your spouse may be concealing large transfers or withdrawals.
Sudden interest in cryptocurrency
If your spouse is suddenly interested in cryptocurrency, they may be converting marital funds into hard-to-trace digital assets. You may have heard them ask about cryptocurrency or seen downloaded crypto apps if their device uses an account that’s linked to yours.
Sudden secrecy
If your spouse has become secretive or defensive regarding passwords, mail or financial statements, they may be hiding assets.
Inaccuracies in financial disclosure during divorce can lead to an unequal distribution of property. If you believe this is happening to you, consider legal guidance to protect your interests.