High-asset divorces often involve complex financial matters, such as business interests, real estate, investments and luxury property. Under California community property law, marital assets are divided 50/50.
With so much at stake, it’s not uncommon for one spouse to try to hide assets to keep more than their fair share. Recognizing the warning signs can protect your rights and financial future.
Uncovering hidden assets
Financial dishonesty can occur in any marriage or divorce, but it may be more common in those involving substantial assets. A spouse may assume their spouse won’t notice missing funds. Some may try to conceal money out of anger or a desire to maintain a luxury lifestyle after the divorce.
If you suspect your spouse isn’t being fully transparent about finances, here are some red flags to look for:
- Frequent cash withdrawals
- Transfers to unknown accounts
- New or increased business expenses
- Loaning money to friends and family
- Failing to disclose business interests
- Deferring bonus payouts until a later date
- Undervaluing their business
- Purchasing luxury items that can be easily hidden, such as art, jewelry and collectibles
While none of these, on their own, prove wrongdoing, it’s important to trust your instincts if you notice a pattern of unusual financial activity.
Both spouses are required to fully disclose all assets, income and debts during the divorce process. If it’s suspected that one spouse is being dishonest, there are several tools to uncover the truth. One way is to hire a forensic accountant to analyze records, trace transactions and identify inconsistencies. Their training is geared towards detecting hidden income streams, concealed investments and missing monies.
Hiding assets in a divorce is both unethical and illegal. If discovered, it can undermine the credibility of the dishonest spouse and result in both civil and criminal penalties. As soon as you suspect your spouse is hiding assets, it’s critical to contact a legal representative. The sooner you get help, the better your chances are of stopping it and preventing a major financial loss. Your future financial security is at stake, and you must protect it.
