Hidden assets in a divorce could make the process more complicated. If you’re considering divorce but are worried that your spouse may have money or property you don’t know about, hiring a skilled divorce attorney is critical. An experienced attorney can analyze financial information from your spouse and any information you provide to determine whether your spouse is fully disclosing their finances. Typically, your lawyer will use the following methods to attempt to find hidden assets during divorce.
Financial Affidavit
Both parties in divorce are legally required to submit a Financial Affidavit, a signed and sworn document that details each party’s income, expenses, assets, and liabilities. It is provided early in the divorce process before the discovery starts. This document must be kept updated with any changes that occur during the divorce.
Requests for Production
The next step in the divorce action is discovery, the process in which the parties share relevant information. It begins with a Request for Production of financial records. Typically, the request asks for documents, including paystubs, tax returns, credit card statements, financial institution statements, and real estate documents.
If hidden assets in a divorce are suspected, your attorney may also ask for documents related to travel, business expenses, tax payments, and refunds, retirement plan contributions and distributions, rental income, leases for safe deposit boxes and storage units, gifts and loans, financing applications, trust documents, and vesting schedules.
You should inform your attorney about any assets you know your spouse has, including trusts, inheritances, shares in a business, stock options, and other property, so that the document request can be tailored accordingly. If you have copies of financial records, also give them to your lawyer to check against what your spouse provides.
Interrogatories and Depositions
Your attorney may also make requests for interrogatories and depositions. Interrogatories require your spouse to provide written answers to questions, while in a deposition, your spouse is answering oral questions in an out-of-court setting. These can be helpful by requiring your spouse to explain financial records and any suspicious activity found in them.
Hidden Assets in a Divorce and Digital Evidence
Hidden assets in a divorce are tough to hide from digital surveillance. This is why electronic information, including emails, text messages, and access to social media accounts, may also be requested. Such digital evidence may help demonstrate that your spouse hides assets or conceals purchases.
Subpoenas for Financial Information
If your spouse doesn’t disclose all financial records, your attorney can subpoena a third party that has the documents. This may include a financial institution, accountant, employer, or other party.
Forensic Accountant
When hidden assets or income is suspected, a forensic accountant can be consulted to conduct a high-level tracing analysis. The forensic accountant can compare income and expenses to bank balances to determine if income has been funneled to other individuals or accounts. Pay statements can also be traced to financial accounts to determine where paychecks are deposited. The forensic accountant may also look for offshore and foreign investments and shell companies if there is suspicious activity.
Public Record Searches
A wealth of information available through public databases may show hidden assets. These include local land records, state vehicle registrations, and business registrations (in Connecticut, online users can search C.O.N.C.O.R.D for business registered with the Secretary of the State).
Private Investigators
If necessary, a private investigator can be hired to conduct surveillance, search private databases, and gather other evidence indicative of a spouse concealing income and/or hidden assets in a divorce.
Challenges
Taking the steps discussed above can be time-consuming, complicated, and expensive. In addition, legal and ethical rules prohibit an attorney from using illegally obtained evidence in a case. Your attorney must follow the law when searching for hidden assets in a divorce case.
Accordingly, you should weigh the cost and benefit of a search for assets. With financial experts’ help, your attorney can advise you whether it is worth continuing based on how much you are likely to gain.
If you’re considering divorce and suspect your spouse is concealing assets, you should consult an attorney skilled at analyzing complex finances and conducting asset searches. Our lawyers have extensive experience with these cases and can help you obtain a fair settlement. Contact us to learn how we can assist you with your divorce.
