California is a community property state, which means all marital assets are divided equally. However, some spouses want more than their fair share.
These unethical individuals will attempt to conceal some of the marital assets so they can retain a larger share for themselves. A forensic accountant can determine the whereabouts of those hidden assets, but several red flags could trigger an investigation
5 red flags to look for
1. Your spouse changes their financial behavior. An abrupt change in how your spouse handles money could be a warning sign. They may suddenly be interested in the family finances. They may also suddenly avoid all conversations about money.
2. Your spouse is secretive about shared finances. They may insist on handling joint accounts or secure them with a new password you’re not given.
3. Financial records have discrepancies. Bank statements and credit card statements are missing. Tax returns don’t match what you know about their income and investments. There are excessive business expenses.
4. You are seeing cash withdrawals or transfers to unfamiliar accounts. Your spouse is purchasing luxury items such as jewelry, artwork and luxury cars.
5. Your spouse continuously gives you excuses and delays when requesting financial information.
Complete financial transparency is required during divorce proceedings. Hiding assets during a divorce can lead to severe penalties in California. The court may award the other spouse 100% of the hidden assets. Additionally, the spouse hiding assets may be required to pay the other spouse’s costs of hiring investigators or forensic accountants. There may also be criminal charges involved, resulting in fines and imprisonment.
Speak with a legal professional if you suspect your spouse of hiding assets, especially if your marriage is heading for divorce. They can guide you through the process of securing court-ordered financial disclosures and help ensure the fair division of your marital assets.