Financial transparency is not just ideal during a divorce. The law requires it. Yet, hidden assets pose a significant threat to a fair settlement. If your spouse suddenly changed spending habits or stopped talking openly about money, they may be attempting to conceal marital property.
What happens when a spouse hides assets?
Hiding assets during a divorce is a serious legal violation. Courts impose financial and legal penalties on spouses who conceal wealth. Hidden assets can also lead to incorrect support orders and protract the legal proceedings considerably. Thus, knowing the warning signs early can prove critical to your case.
Six red flags you should know
Now that you understand the consequences, watch for these six warning signs:
- Controlling transactions. Your spouse handles every bill, investment and bank interaction alone, making it harder for you to track shared finances.
- Unexplained withdrawals. Large or repeated cash withdrawals and sudden transfers to unknown accounts may indicate an attempt to move assets beyond reach.
- Missing documents. Disappearing bank statements or tax returns with missing pages may mean your spouse is hiding financial records from you.
- Transfers to family or friends. Loaning, gifting or selling property below market value to relatives or business partners is a common method of temporarily concealing assets.
- Deferred compensation. Asking an employer to delay bonuses or raises until after the divorce keeps that income out of settlement talks.
- Fake business losses. A spouse who owns a business may delay invoicing, inflate expenses or create fake vendor bills to make the company appear less profitable.
Recognizing these signs puts you in a stronger position. The next step is knowing how to take action.
Steps you can take to uncover hidden assets
Once you suspect your spouse is hiding assets, here is what you can do:
- Gather existing records: Collect tax returns, bank statements and credit card bills you already have, as these can reveal unexpected financial activity.
- Look for breadcrumbs: Review financial disclosures and pay stubs for clues like unknown interest income or payments to third parties that do not add up.
- Use formal discovery: Your attorney can request documents, send interrogatories or issue subpoenas to banks and employers to obtain records your spouse may be withholding.
- Hire financial experts: A forensic accountant can trace complex financial trails or hidden business assets that are difficult to uncover on your own.
A comprehensive financial picture strengthens your position and helps ensure you fight for what you rightfully deserve.
Your rights are worth fighting for
Hidden assets can keep you from the fair share of marital property you deserve under New Hampshire law. The legal system provides tools to facilitate full financial disclosure. Forensic accountants, discovery processes and legal professionals exist to help people in your situation. You do not have to accept a settlement built on incomplete information. With the right guidance, you can make sure your divorce reflects the truth of what you and your spouse built together.
