How to Uncover Hidden Assets in Divorce

Divorce can be one of life’s most emotionally taxing experiences, often complicated by financial uncertainty. A challenging aspect of this process is the potential for hidden assets one spouse may attempt to conceal to avoid equitable division during the divorce settlement.

Discovering these hidden assets is crucial for ensuring a fair outcome, as they can significantly impact your financial future. In this article, we will explore practical tips to help you uncover hidden assets during your divorce.

1. Understand Common Types of Hidden Assets

Before exploring specific strategies, it’s essential to understand what constitutes hidden assets. Knowing the types of hidden assets will help you be better prepared to look for them during the divorce process.

Common types of assets that spouses try to hide can include the following.

• Undisclosed Bank Accounts — Spouses may have additional checking or savings accounts that they don’t disclose.
• Investment Accounts — Stocks, bonds, or mutual funds held in accounts that are not mentioned can often go unnoticed.
• Real Estate — Properties may be owned in a spouse’s name or through a trust, making them easy to overlook.
• Business Interests — If one spouse owns a business, they may undervalue or underreport its worth.
• Cash and Personal Property — Items like jewelry, artwork, or collectibles can be hidden or improperly valued.

2. Gather Financial Documentation

The first step in uncovering hidden assets is to gather as much financial documentation as possible. This documentation may include tax returns, bank statements, pay stubs, credit card statements, and loan documents.

Be sure to request these documents promptly and keep copies for your records. If your spouse is uncooperative, a court may issue an order requiring them to provide these documents.

3. Investigate Online Financial Accounts

In today’s digital age, many financial transactions occur online. Investigating online accounts can reveal hidden assets. If you do not have access to your spouse’s accounts, consider discussing the need for complete financial transparency with your attorney.

Here are the steps you can take:

• Review shared accounts, such as joint bank accounts or credit cards. Look for any unusual or unrecognized transactions.
• Search for new accounts that your spouse may have opened since the start of the divorce process. This could include brokerage accounts, cryptocurrency wallets, or peer-to-peer payment platforms.
• Examine email correspondence to look for confirmations or communications regarding financial transactions, account openings, or investments that you may need to be made aware of.

4. Hire a Forensic Accountant

In many cases, working with a forensic accountant specializing in financial investigations can be invaluable in uncovering hidden assets. They can scrutinize financial documents for discrepancies and identify patterns that suggest hidden assets. They can also trace funds and detect asset transfers or unusual spending patterns.

A forensic accountant can also assist if your spouse owns a business. They can help determine if your spouse has correctly reported its market value and can uncover attempts to undervalue it. While hiring a forensic accountant can be costly, their expertise will help you recover more than the expense of their services.

5. Utilize Discovery Tools

The legal process of discovery is an essential part of divorce proceedings. During this phase, both parties are required to disclose financial information. An experienced divorce attorney can help you navigate the discovery process and ensure that you gather all the necessary information.

Here are ways to utilize discovery effectively:

• Interrogatories — These are written questions that your spouse must answer under oath. Use them to ask specific questions about assets, debts, and income.
• Requests for Production — You can request that your spouse produce financial documents, including bank statements, tax returns, and asset valuations.
• Depositions — A deposition is a sworn out-of-court testimony. Use this opportunity to ask your spouse about their financial situation and any potential hidden assets.

6. Analyze Lifestyle and Spending Habits

Sometimes, your spouse’s spending habits can provide clues to hidden assets. If your spouse has made significant purchases or lifestyle changes without a clear explanation, or if you notice any large or unusual transactions in joint accounts or shared credit cards, this could indicate undisclosed funds.

7. Look for Red Flags

There are often behaviors that can indicate your spouse is trying to hide assets. For example, if they become defensive or avoid answering direct questions about finances, this could be a sign they are hiding something. Another thing to look for is sudden, unexpected transfers of money or assets to friends, relatives, or new accounts should raise suspicion. And finally, if they are being secretive with their phone or frequently changing their passwords, you may want to investigate further.

8. Research Social Media and Online Presence

Social media can provide unexpected insights into a person’s finances. While social media should not be your primary source of information, it can complement your other investigative efforts.

• New Purchases — Your spouse may post photos or updates that reveal new purchases, such as luxury items or experiences, which may suggest undisclosed funds.
• Financial Interests — If your spouse discusses investments or business ventures online, it may lead to uncovering hidden assets.
• Connections with Wealthy Individuals — Relationships with financially secure individuals could suggest potential sources of hidden assets.

9. Work With a Private Investigator

If you suspect that your spouse is hiding significant assets and you cannot uncover them on your own, hiring a private investigator may be worthwhile. Private investigators can access public records and databases to find hidden properties, vehicles, or business interests, track down transactions, and trace funds to their sources. If the private investigator uncovers something, they can also help provide evidence to support your case in court.

Do You Suspect Your Spouse is Hiding Assets in Your Divorce? Attorney Hunter Fowler Can Help

Uncovering hidden assets during a divorce can be challenging. However, it’s necessary to ensure that both you and your spouse receive a fair settlement. An experienced divorce attorney can help you understand the legal requirements of asset disclosure, gather evidence effectively, and negotiate a fair settlement if you find hidden assets during your divorce.

Fowler Law Group specializes in navigating the complexities of divorce, including uncovering hidden assets. Attorney Hunter Fowler is always looking for a way to benefit you. During your divorce, he will collaborate with you, your spouse, and their attorney to determine all assets and debts you share and work for a settlement that will benefit you as much as possible.

Contact us for a consultation.