Family Law Specialist Certified By The State Bar Of California

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How you can find hidden assets during divorce

On Behalf of | Jun 4, 2024 | DIVORCE - High-Asset Divorce

During the divorce process, spouses may be required to disclose all their financial assets and liabilities. However, some may not disclose everything. They may hide assets to avoid fair distribution.

If you are going through a divorce in California and suspect that your ex-spouse is hiding assets, you can employ several strategies to uncover them, such as the following.

Inquiries during deposition

You may have the chance to question your ex-spouse under oath during a deposition. This process allows you and your legal team to ask detailed questions about their finances, including bank accounts, property, business interests and other potential assets. The answers provided during the deposition are legally binding, and any discrepancies or falsehoods can be used as evidence in court.

Voluntary disclosures

You can also inspect the voluntary financial disclosures submitted by your spouse. Carefully reviewing these documents can reveal inconsistencies or omissions. Compare the disclosed information with other known financial documents to identify any discrepancies. If you find any gaps or suspicious entries, you can use this information to further investigate and potentially uncover hidden assets.

Involuntary disclosures

If your spouse fails to disclose all assets voluntarily, you can request court-ordered involuntary financial disclosures. This might include subpoenas for financial records from banks, employers and other institutions that hold information about your spouse’s assets. You can also request a forensic accountant to conduct a thorough examination of financial records, including tax returns, credit card statements and business records, to trace any hidden assets.

Conduct a lifestyle analysis

Comparing your spouse’s reported income and expenses to their actual lifestyle can provide valuable insights into potential hidden assets. Look for discrepancies between their claimed income and their standard of living, including extravagant purchases, memberships or frequent travel. If their lifestyle seems to exceed their reported income, it could indicate hidden assets or additional sources of revenue that they have not disclosed.

Seeking legal guidance can streamline the process of uncovering hidden assets during divorce proceedings, better ensuring compliance with legal procedures and maximizing your chances of obtaining a fair settlement.