How to uncover hidden assets in a high-asset divorce
When a divorce involves substantial assets, one spouse might be tempted to conceal some assets to gain a financial advantage in the divorce settlement. The party suspecting the other of concealing property or income might wonder how to uncover hidden assets.
High-asset divorces can involve a wide spectrum of financial interests, including real estate, investments, business ownership and offshore accounts. Uncovering hidden assets is critical to help ensure a fair division of property. There are strategies affected spouses can apply to safeguard their financial future.
Collaborating with a forensic accountant
Collaborating with a reliable forensic accountant can help affected spouses trace financial discrepancies and uncover concealed assets. This involves:
- Analyzing complex financial documents
- Identifying irregularities
- Providing expert testimony in court
Forensic analysis is invaluable in high-asset divorces where financial maneuvers may involve layered transactions or sophisticated methods of concealment.
Conducting comprehensive financial discovery
During the discovery phase, each spouse should disclose their financial information. This includes:
- Bank statements
- Tax returns
- Investment portfolios
- Business records
Requesting detailed financial documents and scrutinizing them for inconsistencies can reveal hidden assets. Subpoenas may also be issued to third parties, such as financial institutions or business partners, to obtain relevant records.
Examining tax returns
Tax returns often provide clues about undisclosed income or assets. For instance, a Schedule C (profit or loss from business) may show income that doesn’t align with reported earnings. Deductions for mortgage interest and property taxes can also shed light on ownership of undeclared real estate. Reviewing multiple years of tax returns can help identify patterns of financial concealment.
Monitor lifestyle and spending
If a spouse’s lifestyle significantly exceeds their reported income, it could signal the presence of hidden assets. Luxury purchases, extravagant vacations or expensive hobbies may provide evidence of undisclosed wealth. Keeping a record of these expenditures can strengthen a spouse’s case.
Leverage digital tools
Digital assets like cryptocurrencies are becoming increasingly common in high-asset divorces. Blockchain analysis tools can trace cryptocurrency transactions and uncover holdings. Reviewing email correspondence, online banking activity and financial apps may also reveal concealed resources.
Finding concealed assets during a high-asset separation requires diligence, legal support and strategic planning. By employing the abovementioned strategies, affected spouses can help ensure a thorough financial investigation and fair property division.
