How do I find hidden assets in a divorce?

Hidden assets are unfortunately common in divorce proceedings. Some estimates suggest that assets are hidden in a significant percentage of divorces. Finding these assets requires diligence, financial knowledge, and sometimes professional help.

Common ways that spouses hide assets include understating income on financial disclosures, overpaying the IRS and receiving a refund after the divorce, transferring assets to family members or friends, creating false debt obligations, purchasing easily concealed items like art or collectibles, holding cryptocurrency in undisclosed wallets, and maintaining secret bank accounts or investment accounts.

Several strategies can help uncover hidden assets. Reviewing tax returns carefully can reveal income sources, investments, and deductions that point to undisclosed assets. Bank statements may show unexplained transfers. Comparing lifestyle expenses to reported income can reveal discrepancies. Public records searches can uncover real estate holdings or business interests.

During the divorce process, the discovery phase provides legal tools for uncovering hidden assets, including interrogatories, requests for production of documents, depositions, and subpoenas to third parties such as banks and employers. Some cases warrant hiring a forensic accountant who specializes in tracing assets.

If a court determines that a spouse has intentionally hidden assets, the consequences can be severe, including contempt of court, penalties, and a larger share of the marital estate being awarded to the other spouse.

DIVORSAY's Evidence Vault helps you securely store and organize financial documents, and its AI-powered analysis can flag potential red flags and discrepancies in financial records.