If you are getting closer to a divorce, it is important to gather financial information. This could include paperwork relating to investments or savings. It could also include bank statements or pay stubs. It can be wise to keep a copy of your tax returns or other related documentation.
In addition to gathering all of these documents, make sure that you keep a close eye on your financial accounts as you move toward the divorce. While it is true that you and your spouse are both obligated to make an honest financial disclosure to the court, the reality is that people sometimes do try to hide assets, and you need to look for the red flags showing that this is happening.
Unexplained financial transfers need to be examined
For example, perhaps your spouse has recently transferred a large amount of money into a different bank account. Is it an overseas account that they are going to “forget about” when they make their financial disclosure? The sudden transfer, especially if it is outside of the norm, could indicate that they are trying to hide at least a portion of the money and keep it out of property division.
Or perhaps the bank account belongs to a friend or family member. One common tactic for hiding assets is to transfer them to another individual, who will then transfer them back after the divorce.
Furthermore, perhaps your spouse is a business owner. If they start transferring marital funds into the business, you may have cause for concern. Maybe they are just trying to obscure who actually has a right to those funds, or perhaps they have invented fake business debt and are trying to use the company to shelter some assets for themselves.
Your legal options
Looking for these red flags is the first step to determine whether your spouse may be attempting to hide assets. The next step is to work to defend your right to the assets that you deserve, and that is when it can help to work with an experienced law firm.