When A Spouse Hides Assets In A Divorce
Unfortunately, some New Jersey spouses feel that they do not need to disclose all of their income, dividends, accounts or assets during a divorce. This is patently untrue. Hiding assets of any kind is illegal. At Diamond & Diamond, P.A., we have the experience and knowledge needed to locate hidden assets.
10 Ways A Spouse May Attempt To Hide Assets
Spouses may attempt to hide assets for a variety of reasons. A spouse may be upset that the other spouse wants a divorce, or feel the other spouse does not deserve an equitable share of the marital assets. A spouse may hide assets as a way to feel in control. In some cases, a spouse is just plain selfish.
Here are the top ways that spouses try to keep some assets a secret:
- Hiding cash under the mattress, in a shoebox, in a safety deposit box or in a separate and secret bank account. If your spouse gets paid in cash or earns a significant portion of their income in cash, this may be the way they are able to keep their money “under the marital radar.”
- Sudden high-end purchases. In some cases, one spouse will suddenly purchase high-cost items, art or boats, furniture or even sporting equipment or medical devices with the plan to sell the items after the divorce and keep the money.
- Sudden personal loan payoffs. Sometimes these “loans” are just a way to put large amounts in the custody of friends or romantic partners until after the divorce.
- Deferred bonuses or promotions including stock options. We can depose bosses and get to the bottom of the issue.
- Custodial accounts for the kids. These appear to be set up to ensure the financial welfare of the children but in some cases, a spouse will set up an account using the kids’ Social Security numbers to defy detection. Later, after the divorce is final, the spouse will take that money out and use it for their own purposes.
- New contracts or holding back of commission income. When one spouse owns a business they may attempt to have it appear as if the business is not doing as well as it is. We investigate the monies received throughout the quarter and compare this to previous years.
- Filing false tax returns. It’s hard to believe anyone would do this given the consequences but it has been done in an attempt to appear to have less income. In some cases, after the divorce, the spouse will immediately “amend” their return to fix the “error” and try to avoid an audit.
- Overpayment to the IRS. When a spouse overpays then there is less income on hand. The IRS will likely spot the overpayment and send a check months later for the overpayment.
- Transferal of stock, brokerage account into someone else’s name. We can determine if this happened by forensically following the paper trail. If accounts from three, four or five years ago no longer show up on tax returns, one must wonder where they have gone.
- Offshore accounts. This is another way spouses, particularly business owners, hide money. Again, by way of forensic accounting, these accounts can be revealed.
Our experienced team knows all of the sneaky ways a spouse may try to hide assets. We find them.
Find The Assets And Answers You Need
When you suspect or know that your spouse is hiding assets, partner with the legal team that will work tenaciously to ensure that all assets are accounted for. At Diamond & Diamond, P.A., we will make certain that an equitable division of all marital assets can happen. Call us at 973-921-7407, or reach out to us via this website contact email and we will be in touch with you. We offer a free initial consultation so that we can hear your issue and provide answers to what to do next.