What to Know if Your Spouse May Be Hiding Assets in equitable distribution | Allan Brandon Tise PLLC, Attorney at Law
September 7, 2021
Could your spouse be hiding assets as you approach or go through a divorce? Unfortunately, divorce is usually a challenge even when the split is amicable and both parties are truthful during negotiations. But when hidden assets are part of the equation, you face an added burden you must overcome. Why is it so important that you root out any hidden assets? And how can you do so? Here's what you need to know.
Why Must All Assets Be Transparent?
The foundation of all divorce negotiations is the idea that all relevant information is on the table. The only way that negotiations will be fair, accurate, or equitable is if both parties know everything they need to know. Even if you don't personally care about some asset in question, you have a right to its value - but first, you must know that value.
Unfortunately, oftentimes one spouse is at a disadvantage when it comes to the finances of the marriage or the divorce. They may have relied on the income of the other spouse. They may not have as much financial education or not been involved with the finances, or they may not have the future earning capacity of the other. Transparency is the only hope for them to come out with the assets they need and deserve in equitable distribution.
How Do Spouses Hide Assets?
So, what are some common ways that your spouse may hide assets? One of the most common is gifting or transferring items to another person. This could mean physically moving hard assets like a boat or jewelry to a friend or family member's house. Or your spouse might transfer ownership of accounts to another person's name. Cheating spouses may even be bold enough to gift assets to their new partner.
Assets can also be parked in various locations still under the control of the spouse. For instance, the spouse might send overpayments to the IRS, intending to request a refund after the divorce, or they may store goods in a safe deposit box at a new bank or even at work. One method that can be particularly hard to spot is deferred income or expenses. A spouse might defer a large bonus until the following year, hoping to finish negotiations before the bonus becomes actual income. A business owner might also defer compensation for services or delay a valuable contract so that it is not on the books during negotiations.
How Can You Find Hidden Assets?
The good news is that you have a variety of means to root out hidden assets. Some spouses get a head start by doing some research on their own before the divorce. You might find payment for that safe deposit box on your bank statement or notice a large withdrawal of money in cash. Sometimes changes in behavior could be a red flag that something is amiss.
Outside professionals are also of great benefit. A forensic accountant can review financial documents and are often invaluable in discovering hidden assets.
Certainly, the biggest tool an innocent spouse has for finding these assets is the discovery part of the divorce case. During discovery, both parties must turn over requested documents to the other party. This includes things like tax returns, business records, and account statements. If your spouse fails to follow the rules of discovery, they can end up in legal hot water. You can also subpoena information from places like banks, credit unions, investment accounts and retirement account managers.
What Should You Do If You Suspect Your Spouse?
When hidden assets are involved, you should not go it alone. A skilled attorney and forensic accountant can spot things that the untrained eye may not see or understand. They will help ensure the best outcome during discovery. Allan Brandon Tise PLLC, Attorney at Law can help. Call to make an appointment today and discuss your concerns. We will work with you to find relevant assets and ensure you get your fair share.
Why Must All Assets Be Transparent?
The foundation of all divorce negotiations is the idea that all relevant information is on the table. The only way that negotiations will be fair, accurate, or equitable is if both parties know everything they need to know. Even if you don't personally care about some asset in question, you have a right to its value - but first, you must know that value.
Unfortunately, oftentimes one spouse is at a disadvantage when it comes to the finances of the marriage or the divorce. They may have relied on the income of the other spouse. They may not have as much financial education or not been involved with the finances, or they may not have the future earning capacity of the other. Transparency is the only hope for them to come out with the assets they need and deserve in equitable distribution.
How Do Spouses Hide Assets?
So, what are some common ways that your spouse may hide assets? One of the most common is gifting or transferring items to another person. This could mean physically moving hard assets like a boat or jewelry to a friend or family member's house. Or your spouse might transfer ownership of accounts to another person's name. Cheating spouses may even be bold enough to gift assets to their new partner.
Assets can also be parked in various locations still under the control of the spouse. For instance, the spouse might send overpayments to the IRS, intending to request a refund after the divorce, or they may store goods in a safe deposit box at a new bank or even at work. One method that can be particularly hard to spot is deferred income or expenses. A spouse might defer a large bonus until the following year, hoping to finish negotiations before the bonus becomes actual income. A business owner might also defer compensation for services or delay a valuable contract so that it is not on the books during negotiations.
How Can You Find Hidden Assets?
The good news is that you have a variety of means to root out hidden assets. Some spouses get a head start by doing some research on their own before the divorce. You might find payment for that safe deposit box on your bank statement or notice a large withdrawal of money in cash. Sometimes changes in behavior could be a red flag that something is amiss.
Outside professionals are also of great benefit. A forensic accountant can review financial documents and are often invaluable in discovering hidden assets.
Certainly, the biggest tool an innocent spouse has for finding these assets is the discovery part of the divorce case. During discovery, both parties must turn over requested documents to the other party. This includes things like tax returns, business records, and account statements. If your spouse fails to follow the rules of discovery, they can end up in legal hot water. You can also subpoena information from places like banks, credit unions, investment accounts and retirement account managers.
What Should You Do If You Suspect Your Spouse?
When hidden assets are involved, you should not go it alone. A skilled attorney and forensic accountant can spot things that the untrained eye may not see or understand. They will help ensure the best outcome during discovery. Allan Brandon Tise PLLC, Attorney at Law can help. Call to make an appointment today and discuss your concerns. We will work with you to find relevant assets and ensure you get your fair share.
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