Dividing assets is often one of the most stressful parts of the divorce process. This is especially true if you believe that your spouse is being dishonest about their financial situation. If you suspect that your spouse is hiding assets during your divorce, it is crucial that you understand your legal rights and options. Both spouses are legally required to fully disclose all assets and debts. Reach out to an experienced Union County property division attorney to schedule your free consultation and discuss your case with a legal professional today.
What Are Common Signs Your Spouse May Be Hiding Assets?
Some common red flags that your spouse might be concealing assets during your divorce proceedings include the following:
- Sudden changes in spending or income: A noticeable shift in your spouse’s habits, such as significant, unexplained cash withdrawals, large gifts to family or friends, or a sudden and suspicious decrease in reported income without a change in employment, can be a red flag.
- Vague or missing documentation: If your spouse is reluctant to provide complete financial statements, tax returns, or business records, or if the documents they provide are incomplete or altered, this suggests potential concealment.
- New or unusual business activity: Look out for the creation of new business entities, partnerships, or trusts shortly before or during the divorce process. These entities are often used as ways to divert or obscure marital funds.
- Delayed compensation: A spouse may arrange with their employer to delay receiving significant bonuses, raises, commissions, or stock options until after the divorce is finalized.
- Overpaying debts or creditors: They might intentionally overpay a credit card or a friendly creditor with the understanding that the extra funds will be returned to them once the divorce is complete.
If you notice any of these signs, it is important to discuss them immediately with your property division attorney.
What if I Suspect My Spouse is Hiding Assets During My NJ Divorce?
If you’re suspicious that your spouse is hiding assets during a New Jersey divorce, it is a serious concern that warrants quick legal action. New Jersey law operates under the principle of equitable distribution, meaning all marital assets must be fairly divided, and full financial disclosure is mandatory for both parties. If you suspect dishonesty, the first step you should take is to document your concerns and gather any available evidence, such as old bank statements, tax returns, or communications that suggest undisclosed accounts or transfers.
Your property division attorney will then use the discovery process to uncover hidden assets. This may involve issuing subpoenas to financial institutions, demanding further documentation from your spouse, and potentially using forensic accountants. Forensic accountants specialize in tracing money, valuing complex business interests, and identifying common hiding tactics like transferring funds to secret bank accounts, purchasing undervalued assets, overpaying creditors, or delaying bonuses and raises.
Successfully proving that your spouse concealed assets can result in the court penalizing them by awarding you a disproportionate share of the marital estate as the non-offending spouse, in addition to potentially imposing sanctions and requiring them to pay for your legal fees. Do not hesitate to consult with your attorney and protect your financial rights.
