During a divorce, the fair division of marital property depends on both parties making complete financial disclosures. Unfortunately, some individuals attempt to conceal assets to prevent them from being included in the property distribution process. These hidden assets can significantly impact the final settlement and leave one spouse at a disadvantage.
What Are Hidden Assets in Middlesex County Divorces?
Hidden assets refer to any property, funds, or valuables that one spouse deliberately conceals from the other during divorce proceedings. This concealment violates the legal obligation for full financial disclosure that exists in all divorce cases.
Spouses find many ways to hide assets during divorce, such as:
- Transferring money to friends or family members with the understanding that it will be returned after the divorce is finalized. This creates the appearance that the money is no longer part of the marital estate.
- Creating fake debts to make it appear that available funds are lower than they actually are. A spouse might “loan” money to a friend who then holds it until after the divorce.
- Deferring income, bonuses, or commissions until after the divorce concludes. This prevents these funds from being considered during property division.
- Undervaluing or underreporting business assets, which is particularly common for business owners who can manipulate financial statements.
- Purchasing items in cash that can be easily overlooked or undervalued, like expensive collectibles and prepaid gift cards.
- Having cryptocurrency holdings that are difficult to trace.
- Physical assets such as jewelry or art stored in private locations.
- Retirement accounts or investments not reported in financial statements.
That is a long list of potential assets, but there are ways to find them.
How Can Hidden Assets Be Discovered?
Uncovering hidden assets often requires thorough investigation and financial analysis. Tax returns serve as a starting point, revealing inconsistencies or unexplained changes in income or deductions that might point to concealed resources. These documents can also expose income sources that remain invisible on other financial statements.
Bank statements and credit card records provide more insight when examined for unusual transactions, large withdrawals, or payments to unknown recipients. Equally telling are lifestyle inconsistencies, where spending habits dramatically differ from reported income.
For those with business interests, company records can reveal suspicious activities like payments to non-existent employees or vendors—transactions that may actually represent redirected funds being sheltered from disclosure. Additionally, thorough property searches across multiple jurisdictions can uncover real estate or vehicles strategically titled in the name of the spouse or related parties to maintain their secrecy.
What Legal Actions Can Be Taken if Assets Are Discovered?
This depends on the circumstances. The court may award a larger percentage of the known marital assets to the wronged spouse as compensation for the attempted deception. Judges can also impose financial sanctions against the party that concealed assets, including ordering them to pay the legal fees of their spouse.
In certain cases, the court might hold the offending spouse in contempt, which can result in fines or even jail time. The discovery of hidden assets often damages the concealing spouse’s credibility with the court, potentially affecting other aspects of the divorce settlement, including child custody decisions.
How Can I Protect Myself From Hidden Assets in My Divorce?
These proactive steps can help safeguard your interests:
- Gather financial documentation before filing for divorce. This includes tax returns, bank statements, investment accounts, retirement accounts, and property deeds.
- Document the lifestyle and spending habits of your spouse to establish baseline financial patterns.
- Work with financial professionals who are experienced with divorce cases. They can identify potential red flags and areas that require deeper investigation.
Finally, consider taking legal action; formal discovery methods like depositions, interrogatories, and requests for production of documents will legally compel your spouse to provide financial information.
Need a Middlesex County Divorce Lawyer to Uncover Hidden Assets? Contact Thakkar Family Law
If you suspect your spouse is hiding assets or you need assistance with property division matters, Megha R. Thakkar, Esq. at Thakkar Family Law is ready to help. For a free consultation, call our Middlesex County divorce lawyer today at 732-456-7456 or complete the online form. Located in Piscataway, New Jersey, we proudly serve clients in Middlesex County, Somerset County, Mercer County, Union County, and throughout New Jersey.