In divorce proceedings, especially in high-asset cases, some individuals may attempt to hide assets to avoid equitable distribution. Knowing the signs that your spouse might be concealing assets can help protect your financial interests. Here are five signs that could indicate your spouse is hiding assets.
1. Unexplained financial changes
If you notice significant withdrawals or transfers from joint accounts without a clear explanation, your spouse might move money to undisclosed accounts. Monitor financial statements for any unusual activities that could indicate hidden assets.
2. Secretive behavior about finances
It might be a red flag when your spouse becomes unusually secretive about finances. This includes refusing to share passwords or access to accounts and keeping you out of financial discussions. Transparency should be a standard part of any marriage, so sudden secrecy warrants attention.
3. Undervalued assets or income
Your spouse might underreport income or undervalue assets to reduce their share in a divorce settlement. This can involve reporting lower earnings or misrepresenting the value of real estate or businesses. Be vigilant about discrepancies in financial disclosures.
4. New or unusual investments
Sudden interest in new investments or business ventures can indicate an attempt to hide funds. Watch for unusual purchases or investments that lack a clear purpose or explanation, as these might be tactics to obscure assets.
5. Changes in financial documents
Frequent changes in financial documents, such as wills or trusts, might suggest your spouse is planning to hide assets. Sudden changes in beneficiaries or asset allocations should prompt a closer look at their intentions.
Uncovering hidden assets
Forensic accountants and legal professionals may be crucial in discovering hidden assets. Accountants specialize in tracing funds and identifying discrepancies in financial records. Meanwhile, a legal professional can guide legal options and ensure a fair division of assets.
Engaging these professionals early in the process can safeguard your financial interests and increase your chances of a fair outcome in divorce proceedings.