Hidden Assets
Assets that one spouse deliberately conceals, undervalues, or fails to disclose during divorce to avoid fair division.
Understanding Hidden Assets
Hidden assets are a serious problem in divorce, with studies suggesting up to 30% of divorcing spouses conceal some assets. Common methods include transferring money to friends or family, opening secret accounts, overpaying the IRS to get a refund later, deferring salary or bonuses, undervaluing business interests, and using cryptocurrency. Discovery tools like interrogatories, subpoenas, and forensic accountants can uncover hidden assets. Courts impose severe penalties for asset concealment, including awarding a larger share to the honest spouse.
Real-World Examples
The forensic accountant discovered the husband had been funneling $5,000 monthly into a secret brokerage account for two years before filing.
Related Terms
A financial expert who investigates complex financial records to uncover hidden assets, unreported income, or financial fraud during divorce.
Financial AffidavitA sworn document listing all income, expenses, assets, and debts that each spouse must file during divorce proceedings.
Mandatory DisclosureRequired exchange of financial documents between both spouses early in the divorce process, regardless of whether either side requests them.
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This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.