A divorce has many different parts. One of the largest and most notable is the division of assets between both parties in the divorce. This is when the marital assets owned by both spouses will be divided based on the process of equitable distribution. This means the assets are distributed fairly, but not equally. In these situations, spouses can sometimes fear losing cherished assets, leading them to want to hide their assets. However, this is never a good idea. If you believe your spouse is hiding assets, continue reading to learn more and contact experienced Union County property division attorneys for assistance with your case.
What Are Hidden Assets in a New Jersey Divorce?
Hidden assets refer to any income, financial accounts, property, or interest that are intentionally omitted from financial disclosure during the divorce process. Because New Jersey adheres to the equitable distribution method of dividing assets in a divorce in accordance with N.J.S.A 2A:34-23.1, the courts require full financial disclosure before any assets can be distributed by the courts.
Full financial disclosure is required through a sworn Case Information Statement that includes a full overview of each party’s finances, including assets and liabilities.
Common Types of Assets That May Be Concealed
- Undisclosed bank accounts
- Hidden investment accounts
- Undisclosed cryptocurrency
- Deferred or delayed bonuses or commission
- Business income manipulated by payroll diversion
- Real estate transferred to friends or family
- Overstated debts to offset marital assets
- Intentionally undervalued businesses
Indicators of Potential Hidden Assets
- Sudden or increased financial secrecy
- Restricted access to accounts
- Unexplained cash withdrawals
- Delaying promotions or compensation at work
- Overpaying taxes to increase future refunds
How Do New Jersey Courts Handle Asset Concealment?
New Jersey courts take allegations of financial nondisclosure very seriously. Divorce proceedings in the Superior Court of New Jersey, Family Part, in the county where you are filing for divorce require sworn Case Information Statements. These documents require full disclosure regarding all financial matters, including income, assets, debts, and liabilities.
If the court determines that a spouse has intentionally omitted or undervalued assets, it has the authority to reopen the case to change the distribution of assets, impose court sanctions, or award disproportionate marital assets to the honest spouse.
Legal Consequences of Hiding Assets
- Court-imposed monetary sanctions
- Unequal distribution of assets favors the honest spouse
- Paying the honest spouse’s legal fees
- Tax investigations in extreme cases
- Potential perjury for false sworn statements
How Can a Forensic Accountant Help in a New Jersey Divorce Case?
When a spouse hides assets from you in a divorce, it can be difficult to have a full understanding of what marital assets are in your case. That is why there are different means available in a divorce case to help uncover and locate these missing assets. In certain divorce cases, outside experts may be enlisted in order to assist a case in a variety of ways. In the event of hidden assets, a forensic accountant may be necessary. The job of a forensic accountant is to help find any assets you believe may be missing in your case by looking out for unusual transfers or sales relating to your spouse to track where their money is going. In many equitable distribution disputes in New Jersey, forensic accountants play a considerable role in proving hidden income, tracing concealed transfers, and documenting financial misconduct to present to the Family Part court.
What a Forensic Accountant Examines
- Personal and business tax returns
- Corporate books and payroll records
- Investment portfolios and brokerage accounts
- Lifestyle analysis compared to reported income
- Real estate purchases
Financial Misconduct a Forensic Accountant Can Uncover
- Intentional manipulation of business income
- Creation of fake debts to offset asset value
- Padding payroll expenses
- Purchasing high-value assets with undisclosed cash
- Transferring funds to shell corporations
How Do Hidden Assets Impact Child Support and Alimony in New Jersey?
It’s important to understand that the financial information disclosed during a divorce can have a significant impact on matters like alimony and child support. If income is underreported or assets are undervalued, the courts can calculate support payments incorrectly. This ultimately negatively impacts the dependent spouse or child.
Why Accurate Income Reporting Matters
- Alimony calculations depend on actual earning capacity
- Child support relies on accurate net income
- Courts can impute income if dishonesty and concealment are uncovered
Strategic Considerations in High Asset or Business Owner Disputes in New Jersey
When divorce involves a business ownership, real estate portfolio, or other high-value asset in Mountainside or Union County, financial tracing becomes much more complex. The courts may consider the liquidity, tax implications, and asset valuation in order to determine equitable distribution.
Situations That Require Advanced Financial Review
- Ownership interests in closely held businesses
- Cryptocurrency and digital assets
- Offshore accounts
- Commission-based compensation
- Deferred compensation
What You Should Do if You Suspect Hidden Assets?
In the event you suspect that your spouse is hiding assets in your Union County divorce, understanding how to proceed is critical. In general, the earlier you intervene, the better the outcome you can expect. You’ll generally need to file formal requests for discovery, subpoena records, and work with financial experts to help you protect your rights and receive a fair outcome.
Immediate Steps to Protect Yourself
- Preserve financial records and tax returns
- Keep all shared financial documents
- Request full account statements during discovery
- Monitor accounts for unusual transactions
Contact Our Experienced Union County Divorce Firm Today
If you believe your spouse is concealing assets in Union County or the surrounding area in the hopes of receiving a more favorable outcome in your divorce, working with an experienced attorney with Ross & Calandrillo is in your best interest. Our firm will examine your circumstances to determine the best course of action for your specific situation. Contact us today to learn how we can represent you.
