The end of a marriage brings not just emotional turmoil but also financial uncertainties. One of the biggest fears? Discovering that your spouse has hidden assets. In her recent New Jersey Law Journal article, “Spousal Spying, Hidden Assets and Digital Errors: Cyber Warnings in Family Law Cases,” Bari Z. Weinberger, a distinguished divorce and family law expert, provided important information about how to identify and address hidden assets in divorce to ensure a fair division of marital wealth.
Here are some key points from the article that shed light on common tactics used to hide assets and how to uncover the truth.
Hidden Assets Can Be Lurking Everywhere
Hidden assets can range from undisclosed bank accounts and undervalued investments to physical assets like art and jewelry and high-end designer handbags, to completely digital hiding spots, including cryptocurrency and NFTs. Gone are the days when hiding assets was synonymous with a secret offshore bank account. Hidden assets in today’s day and age can be literally hiding in plain sight.
Detective Work: Financial Forensics
If you suspect your spouse is hiding assets, think like a detective. Start by reviewing financial statements, tax returns, and other documents for any inconsistencies or red flags. Unexplained withdrawals, overpayments on debts, or purchases of high-value items could signal hidden assets. Also, think about your spouse’s behavior and habits. Was your ex constantly talking about all things cryptocurrency, but then in their financial paperwork, no crypto trading account is disclosed? Bring this to the attention of your attorney. In some cases, hiring a forensic accountant might be necessary to delve deeper into your spouse’s financial affairs. This could even include examining computer hard drives for hidden financial evidence.
Legal Tools and Strategies
Armed with evidence, the legal system offers mechanisms to bring hidden assets to light. Discovery processes, subpoenas, and depositions are just some of the tools at your disposal. For example, your attorney can request additional details on any unusual transactions or red flags during the discovery process in divorce, including making a formal request for your spouse to produce all crypto trading accounts.
Penalties for Hiding Assets
When hidden assets are discovered, the courts may assess fines and decrease the amount of the asset the spouse at fault is awarded, among other penalities. The spouse at fault may also be required to pay attorney’s fees and related costs to the wronged spouse. The courts take hidden assets cases very seriously.
Facing the possibility of hidden assets can be daunting, but you’re not powerless. With the right strategies, resources, and legal support, you can uncover the truth and ensure a fair division of assets. Bari Z. Weinberger is committed to guiding you through this process, providing the expertise and support needed to protect your interests and achieve a just outcome in your divorce.