High-asset divorces often involve complex financial holdings, making it easier for one spouse to hide money or property. Whether through undisclosed bank accounts, undervalued business assets or fraudulent transfers, hidden assets can significantly impact property division.
Identifying these assets is essential to achieving a fair outcome. Below are four key strategies for finding hidden assets in a high-asset divorce.
1. Reviewing financial disclosures
Each spouse is required to disclose their assets at the beginning of the divorce process. While some disclosures are straightforward, others may contain omissions or undervalued property. Reviewing tax returns, bank statements and property records can help identify inconsistencies.
Common red flags include missing accounts, unexplained withdrawals or sudden claims of financial hardship. Comparing reported income with past spending patterns can also highlight discrepancies that suggest hidden wealth.
2. Using legal discovery tools
When voluntary disclosures seem incomplete, legal discovery can provide further insight. Requests for documents such as tax filings, investment records and business financial statements can reveal hidden funds. Interrogatories—written questions that must be answered under oath—can also uncover discrepancies.
A deposition is another useful tool. During a deposition, a spouse must answer financial questions under oath, with attorneys present. If answers conflict with previously disclosed records, further investigation may be warranted.
3. Examining business records and investments
A privately owned business can be used to hide income by delaying payments, inflating expenses or transferring funds to third parties. Reviewing business tax returns, payroll records and contracts can provide a clearer picture of actual revenue.
Investments such as stocks, cryptocurrency or offshore accounts may also be used to conceal assets. Identifying unusual transactions, transfers or accounts held under a different name can help uncover hidden funds.
4. Seeking professional assistance
Forensic accountants and private investigators can play a key role in uncovering hidden assets. They analyze financial records, track unusual transactions and identify discrepancies that may indicate undisclosed wealth. Obtaining legal guidance can also help to better ensure a fair division of assets in a high-asset divorce.