Full financial disclosure is an integral part of the equitable distribution process during a New York divorce. When one spouse is dishonest by hiding assets, it can hinder the process and be financially detrimental to the other. Understanding the actions you can take if you feel like your spouse is not being transparent is crucial to protect your legal rights. Reach out to a skilled Suffolk County divorce lawyer for more information today.
What Should I Do if I Think My Spouse is Hiding Assets During an NY Divorce?
Suspecting that your spouse is hiding assets during a New York divorce is a serious concern that requires prompt action. Hiding assets violates the principles of equitable distribution and can significantly impact the final settlement.
The first step is to consult with an experienced divorce attorney. They can advise you on the legal process and the specific strategies for asset discovery. In New York, both parties must complete a Sworn Statement of Net Worth, which provides a detailed breakdown of all income, expenses, assets, and debts. A lawyer can help you review this document for inconsistencies or omissions.
Financial disclosure is crucial. Your attorney will likely use formal legal tools, known as discovery, to uncover hidden assets. These tools include:
- Interrogatories: Written questions your spouse must answer under oath.
- Requests for production of documents: Demands for specific financial records, such as bank statements, tax returns, credit card statements, loan applications, and business records, if applicable.
- Depositions: Out-of-court, sworn testimony given by your spouse or other witnesses.
- Subpoenas: Legal orders compelling third parties, like banks, employers, and business partners, to provide information.
In complex cases, your attorney may recommend hiring a forensic accountant. These specialists are trained to trace money, analyze complex financial transactions, and identify common hiding tactics, such as shifting funds to offshore accounts, purchasing high-value assets like art or jewelry, or deliberately undervaluing a business. A timely and thorough investigation is crucial to ensuring a fair distribution of the marital estate.
How Do I Know if My Spouse is Hiding Assets During Our Divorce?
Suspecting that your spouse is hiding assets often begins by recognizing suspicious financial behavior. Look for common red flags, such as unexplained changes in bank account balances leading up to or during divorce proceedings, or a sudden change in your spouse’s income reporting, especially if they own a business.
Other common signs include:
- Unusual purchases: Large, recent purchases of items like art, antiques, or jewelry that seem out of character and may be easily concealed.
- New accounts: Discovering new bank, brokerage, or retirement accounts you were previously unaware of.
- Business manipulation: For a spouse with a business, look for delayed payments to themselves, writing off personal expenses as business costs, or significantly undervaluing the company’s worth in financial disclosures.
- Mail and documents: Finding statements from unknown financial institutions or documents related to offshore accounts or trusts.
If you observe these signs, gather any supporting documentation discreetly and present it to your divorce attorney immediately. These signs can provide the evidence needed to launch a formal discovery process.
