Your Spouse May Be Hiding Assets in Your Divorce | Quest Law PLLC (2024)

FAQs

What happens when a spouse hides money during a divorce? ›

Contempt of Court: Courts require full disclosure of assets in divorce proceedings. If someone deliberately hides assets, the court could see it as defying a court order, leading to fines or even jail time for contempt.

It should be a red flag if your spouse takes complete control of the finances or changes the passwords, so you cannot get into your accounts. If your bank statements are mailed to you, you may suddenly stop receiving them if your spouse changes your mailing address with the bank without your knowledge.

Tax returns can provide valuable insights into a spouse's financial situation. However, some individuals may underreport income or overstate deductions to hide assets. Reviewing tax returns, especially those from previous years, can help identify discrepancies and uncover hidden assets.

Yes. If hiding the asset rises to the level of the breach of fiduciary duty, the California Family Code can even order damages against the spouse.

That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially. Our attorneys can advise you regarding what information you need to gather and how to address your fears of having no funds.

Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases. It does not necessarily involve marital infidelity, though it can lead to divorce.

As noted, a prenuptial agreement can be one of the best ways to protect assets if you have concerns that a marriage may eventually end in divorce. A prenup can specify which assets each spouse is entitled to should the marriage end and what type of spousal or child support may be provided.

Spousal spying can take many forms. It may involve glancing over your spouse's shoulder while they are sending a text message or putting hidden cameras in your home.

Can I have a secret bank account my husband doesn t know about? ›

Legally speaking, there is nothing wrong with having a separate bank account. You aren't required to keep joint accounts or file joint tax returns. You aren't even required to legally tell your spouse about your secret account, that is, until divorce proceedings start.

An asset search, also known as an asset analysis or asset investigation, is performed by searching public and private records to confirm information such as the asset owner, the history of the asset, business due diligence, or someone's current and past location.

Hiding matrimonial assets is illegal under any circ*mstance. Willful non-disclosure can be punished, which means that if your spouse intentionally about their assets, they can be punished.

Forensic Accountant:

Forensic accountants specialise in analysing given information to determine the actual financial status of a party. In doing so, they can ascertain whether your former spouse may be hiding assets from you. This ensures you have access to and knowledge of the entire asset pool.

It's unlawful to conceal assets in a divorce, but that unfortunately doesn't stop people from doing it. What Are the Indications a Person Is Hiding Assets? Although you may believe your spouse is concealing assets, it's important to take a step back and really examine his or her behaviour.

Aside from criminal charges and financial penalties, hiding assets can also significantly impact the divorce settlement. Courts take a dim view of asset concealment and often penalize the offending spouse by awarding a larger portion of the marital assets to the other spouse.

Most jurisdictions aim for an equitable distribution of marital assets during a divorce, meaning the division should be fair though not necessarily equal. Financial infidelity undermines this process by concealing the true financial picture, making it difficult to achieve a fair division.