Divorce is a complicated and emotional process. Unfortunately, it is not uncommon for one spouse to attempt to hide assets during the divorce proceedings.
This can cause significant financial harm to the other spouse, and it is important to take steps to protect yourself. In this blog post, we will discuss what to do if you suspect your spouse is hiding assets during divorce.
Try to Avoid the Situation in the First Place
If you have not begun divorce proceedings yet, but plan to tell your spouse you want a divorce, and suspect they might try to hide assets, it’s important to be sure you have access to all of your financial accounts.
It’s common for one spouse to take care of the finances. If you’re not that spouse, it’s a good idea to gain access to all of your bank accounts, credit cards, and other financial accounts before you tell your spouse you want a divorce. That way you can monitor the activity on all of your accounts during the divorce process, including the process of dividing your assets.
Understand the Types of Assets That Can Be Hidden
Before you can take action, it is important to understand the types of assets that your spouse may be attempting to hide.
Some common examples of assets that can be hidden during a divorce include:
- Cash: Your spouse may be withdrawing cash from joint accounts or using it to purchase items that can easily be sold or hidden, such as jewelry, expensive clothes and shoes, or electronics etc.
- Investments: Your spouse may be transferring investments to a friend or family member to hold until after the divorce is finalized.
- Business Interests: If your spouse owns a business, they may be undervaluing it or delaying payments to themselves or others in order to make it appear less valuable.
- Real Estate: Your spouse may be transferring ownership of real estate to someone else, or undervaluing the property in order to keep more of the proceeds from a sale.
Gather Evidence
If you suspect that your spouse is hiding assets, it is important to gather evidence to support your claim. This can include bank statements, tax returns, business records, and any other financial documents that may be relevant.
If you do not have access to these documents, you may need to subpoena them from your spouse or their bank or accountant.
It is also a good idea to keep a record of any suspicious behavior or transactions that you observe. This can include unexplained withdrawals or transfers, changes in spending habits, or sudden changes in ownership or control of assets.
Get a Copy of Your Credit Report
Get a copy of your credit report and make sure there are no surprise debts that might have been incurred in your name.
You can contact all three credit bureaus and ask them to place a fraud alert on your account. The fraud alert will notify lenders that you may be a victim of identity theft, which could help prevent someone from opening new accounts in your name without your knowledge.
Consult with an Experienced Divorce Attorney
Divorce can be a complex and challenging process, especially when one spouse is attempting to hide assets. An experienced divorce attorney can help you navigate this process and protect your rights. They can also help you determine what legal actions you can take if you suspect your spouse is hiding assets.
Consider Hiring a Forensic Accountant
A forensic accountant can be an invaluable resource if you suspect your spouse is hiding assets. These professionals are trained to identify and track hidden assets, and they can provide expert testimony in court if necessary.
A forensic accountant can also help you determine the value of assets that may be hidden, which can be critical in negotiating a fair settlement.
Take Legal Action
If you have evidence that your spouse is hiding assets, you may be able to take legal action to protect your rights. This can include filing a motion for discovery, which would require your spouse to produce financial documents and answer questions under oath.
If your spouse refuses to comply with the discovery order, they may be held in contempt of court.
You may also be able to file a motion to freeze assets, which would prevent your spouse from transferring or selling assets until the divorce is finalized. This can be an effective way to ensure that assets are not hidden or undervalued.
Negotiate a Fair Settlement
If you are able to identify and value hidden assets, you can use this information to negotiate a fair settlement with your spouse. Your attorney can help you determine the value of assets and how they should be divided in the divorce.
It is important to keep in mind that hiding assets is illegal and can result in serious consequences for your spouse, including fines, penalties, and even criminal charges.
Protect Yourself in the Future
If you suspect that your spouse is hiding assets, it is important to take steps to protect yourself in the future. This may include keeping careful records of all financial transactions, opening a separate bank account, and monitoring your credit report for any unusual activity. It is also a good idea to consult with an attorney.
Are You Getting Divorced in Virginia?
Divorce is never easy, but it’s important to know your rights as well as what you’re getting into when filing for a divorce. Having an experienced divorce attorney is especially important if you suspect your spouse is hiding assets.
If you have questions about how property and debt division works in Virginia, or if you suspect your spouse is hiding assets, contact us today. We can help you get what you deserve. Our divorce law experts are here to answer your questions.