The outcome of a divorce relies on accurate and complete financial information from both parties. When one spouse is hiding assets, it can create issues during a divorce, as the court may make decisions based on incorrect information. To learn more about how to protect yourself and your financial future, continue reading and contact a skilled Manhattan divorce attorney today.
What Are Red Flags That My Spouse is Hiding Assets?
If you’re in the middle of a divorce, the following warning signs may suggest that your spouse is concealing assets.
- Sudden secrecy regarding financial records or online accounts
- Unexplained withdrawals, transfers, or large purchases
- Missing bank statements, tax returns, or investment documents
- A spouse suddenly claiming their business is struggling despite steady income
- Intentionally overpaying taxes or debts to obtain refunds or credits after the divorce
- Transferring assets to friends, relatives, or business entities temporarily
- Opening new accounts without disclosure
Look out for these red flags and take note of any suspicious behavior during your divorce.
How Does Hiding Assets Negatively Affect Me?
New York follows equitable distribution laws, meaning that marital property is divided fairly between spouses but not always equally. If assets are hidden, the court may divide property based on incomplete or inaccurate financial information. This can leave you with significantly less than you are legally entitled to receive.
Hidden income and assets can also affect child support and spousal maintenance, also known as alimony. These support calculations depend heavily on each spouse’s income and financial resources. Underreporting income or hiding assets may result in lower child support payments, reduced maintenance awards, and an unfair financial burden.
Hidden assets can also create increased litigation and discovery costs, delays in finalizing the divorce, stress and distrust during negotiations, and difficulty planning financially after the divorce.
What Should I Do if My Spouse is Hiding Assets in My NYC Divorce?
If you believe that your spouse is hiding assets during your divorce, it is crucial that you take specific steps to protect your legal rights and options. In many situations, it is better to consult an attorney before directly confronting your spouse or accusing them of anything. Direct confrontation may escalate conflict, lead to your spouse destroying evidence, or encourage further concealment.
Begin by gathering documentation that may prove your spouse is hiding assets. Collect copies of tax returns, bank statements, credit card records, retirement account statements, business documents, loan applications, and more. Keep these records in a secure location and document any suspicious activity or transactions.
Inform your attorney of your suspicions and provide them with the documentation. New York courts require both spouses to participate in full financial disclosure. Cases involving hidden assets often require aggressive discovery strategies, financial analysis, court intervention, and expert witnesses. Your attorney can help implement depositions, subpoenas, interrogatories, forensic accounting investigations, and other discovery tools. Reach out to an experienced attorney for more information today.
