Blog Layout
What to Know if Your Spouse May Be Hiding Assets in equitable distribution | Allan Brandon Tise PLLC, Attorney at Law
Sep 07, 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.
What is alienation of affection in North Carolina? Discover more about this specific type of lawsuit so you can know how to handle this type of situation.
Are you wondering if separation or divorce is the right path for you? Learn more about these options so you can make the best decision for your situation.
Allan Brandon Tise is your trusted child custody attorney serving those undergoing or beginning a child custody battle in Wrightsville Beach, NC. Call now.
This blog discusses six subtle signs you should look out for to protect your emotional well-being and seek necessary legal help for divorce. Read on.
Take a look at what you need to know about primary legal custody in North Carolina and some of the top reasons why a parent might want to go this route.
Alimony provides financial assistance to the lower-earning spouse to help them maintain their standard of living. Explore the various types of alimony.
When courts determine custody of children, they examine many factors. Read about the factors determining child custody in this blog.
Alimony negotiation is one of the toughest parts of divorce proceedings. As the supporting spouse in alimony negotiations, you may have difficulty accepting that you must support your spouse financially, in the future, even though you are no longer married. If you are not careful, the mental and emotional pressure of alimony negotiations may lead you to make mistakes that affect your financial future. To help you avoid jeopardizing your finances, read on to learn about four mistakes you should avoid during alimony negotiations.
If a narcissistic spouse is making your divorce even more of an ordeal, learn about three strategies you can use to stay calm and get through it.
If you've ever experienced an abusive marriage, you know how scary and difficult it can be to try to get out of that situation. Learn how a lawyer can help.
Phone: 910-251-9614 | Email: brandon@tisefamilylaw.com | Address: 130 N Front St., Suite 201 Wilmington, NC 28401
Areas we serve: Wilmington, Carolina Beach, Kure Beach, Wrightsville Beach, Hampstead, Burgaw, Surf City, Landfall, Porters Neck and Wrightsboro
