Hidden Assets

When you are going through a contentious divorce, one of the issues that may arise is that your spouse is hiding assets. Because critical decisions about property division, spousal support, and child support depend on accurate financial information, hidden assets can result in unfair rulings that affect the party not hiding them. 

What Are Hidden Assets?

Florida law requires parties involved in certain family matters to provide mandatory disclosures regarding certain financial information and documents. Hidden assets include any such assets that are required by law to be disclosed and are not. They can consist of various types of assets, including real property, money, financial accounts, or personal property. 

Common Ways to Hide Assets 

Unfortunately, there’s no shortage of ways for people to conceal assets who are motivated to do so. Some of the more common ways people hide assets are to:

• Move items out of the marital home into storage facilities or for safeguarding by friends or family members
• Make loans or gifts to friends or family members that are retrieved after the divorce
• Understate income on tax returns or business records
• Take money out of shared accounts and use it to open new individual accounts without disclosing them
• Use cryptocurrency to hide funds
• Delay a bonus or commission until after the divorce 

If you are concerned that your spouse is hiding assets, look for signs. 

Signs of Hidden Assets 

Some of the signs that your spouse might be hiding assets include:

• Large withdrawals from bank accounts
• Statements from bank accounts or investment accounts you are unaware of
• A sudden interest in cryptocurrency
• New secretiveness regarding finances 
• Unexplained transfers
• Gifts or loan payments to friends or family members

You may be able to find these hidden assets before your case is concluded. 

How to Find Hidden Assets

One of the best ways to find hidden assets is to review the paperwork and statements you can access. Here are some documents you may be able to review and the information they may reveal:

• Tax returns: Form 1040 lists information about wages, salaries, tips, business income, and other forms of income. It also shows interest income, which may help you find a savings account, CD, or bond from which your spouse is receiving interest. Dividends and capital gains are also included here. Schedule A shows itemized deductions, which may reveal if your spouse paid property taxes on real estate you were unaware of. Schedule B lists financial accounts or trusts in a foreign country. Schedule C lists property losses and profits from a business. Schedule E lists income or loss from rental properties. 
• Bank statements: Bank statements can indicate the balance in the account, as well as whether your spouse made any large transactions. If there is a transfer, the statement may show the account number or a portion of the number the funds were transferred to. 
• Credit card statements: Credit card statements can show if your spouse has been purchasing expensive items that you may not be aware of. 
• Loan applications: People tend to show the financial information that shows them to be at their financial best when applying for a loan. Loan applications may provide evidence of funds in bank accounts, information about collateral, and notarized declarations regarding assets and debts. 

Compare the information in these documents and your divorce paperwork. 

Legal Assistance in Finding Hidden Assets

You may need professional assistance to uncover hidden assets. A lawyer and other professionals may be able to help locate hidden assets by using tools such as:

• Public record search: A financial professional may be able to search public records to uncover deeds, titles, and other ownership documentation of assets you might be unaware of.
• Asset tracing: Your attorney may be able to trace accounts and cash flow from one account to another with complete financial records. 
• Discovery requests: Discovery is the formal process of exchanging information and evidence in preparation for litigation. Your divorce attorney may be able to use various discovery tools to identify hidden assets, including interrogatories, requests for the production of documents, and depositions.
• Subpoenas: Your lawyer may be able to issue a subpoena against any financial institution where you believe your spouse may have an account. The financial institution may be required to produce all records related to the account. 
• Forensic accountants: Divorce lawyers may employ forensic accountants who know how to uncover hidden assets, locate offshore bank accounts, and trace accounts. 
• Business valuation experts: These experts may be able to help if you suspect your spouse is intentionally undervaluing a business or professional practice to give you less than you deserve. 

Your divorce lawyer can explain the options most appropriate for your situation. 

Contact an Experienced Divorce Lawyer

The experienced divorce lawyers at McMichen, Cinami & Demps are here to help you uncover hidden assets and fight for a fair resolution of your divorce case. One of our attorneys is Board-Certified in Marital and Family Law. We can discuss how we can help when you call for a confidential case review, contact us at 407-898-2161.