Going through a divorce is hard enough for both parties. But when your soon-to-be ex doesn’t follow the rules, it can make things pretty distasteful.
The legal process of separating assets and finances demands complete transparency from both parties. After all, an equitable division of marital property depends on full and accurate disclosure of income, bank accounts, investments, real estate holdings – anything of value acquired during the marriage.
However, far too often, one spouse attempts to gain an unfair advantage by intentionally concealing assets. This deceitful tactic can have major legal and financial consequences.
At Purposeful Wealth Advisors, we vigilantly safeguard your interests during divorce.
Here is a complete guideline on what to do if you think your spouse is withholding financial information during this critical time.
Identifying the Red Flags
People who want to cheat the system use a range of underhanded tactics to hide their finances. Here are a couple of common signs that you should look out for:
- Underreported income on tax returns
- Suspicious cash withdrawals or wire transfers
- Business assets being “gifted” to relatives or friends
- Missing personal property like cars, jewelry, or art
- Payments to shell companies or offshore accounts
If your spouse’s spending habits seem out-of-sync with their stated income and assets, it could mean that he’s hiding money. An experienced divorce attorney can comb through financial records to uncover any paper trails of stashed wealth.
The Consequences of Withholding Finances in Divorce
During financial disclosures in divorce, the law is pretty clear. If you’re not fully transparent about your finances, it counts as fraud. The penalties can be severe if a judge determines your spouse willfully misled the court, such as:
- The victim might get awarded a larger share of assets, including any hidden wealth.
- Legal fees can be imposed on the dishonest spouse.
- In extreme cases, charges of perjury and contempt of court are also a possibility.
Avoiding Future Fallout
Uncovering hidden assets after a divorce is finalized can make it extremely frustrating for the victim. On the one hand, it’s frustrating, and on the other, it means you didn’t get your fair share during your divorce.
That is why you want to leave no stone unturned during your divorce proceedings. Make sure you peruse full financial transparency from your spouse right from the start.
How to Safeguard Your Interests
According to CBS, around 42% of couples have financial secrets between them. During divorce, this can quickly become a liability. So how do you prevent your spouse from concealing financial information and assets? Simple – be proactive from day one!
That means insisting on complete and transparent financial disclosures and documentation as soon as divorce proceedings commence. Leave nothing to chance. Gather as much financial data as possible – taxes, bank statements, loans, etc.
Follow the money trail wherever it leads you. If preliminary findings point to missing assets or income, your attorney can petition the court for wide-ranging subpoena powers to compel disclosure and conduct formal depositions.
An experienced legal team can also aid in uncovering digital footprints for shadow transactions or hidden cryptocurrency stashes. If you get proof of wrongdoings or fraudulent activities, you can file for spoliation claims to recover misappropriated marital properties.
Work with Us
Navigating divorce’s high financial stakes is difficult enough without having to expose a cheating spouse. Trust the professionals at Purposeful Wealth Advisors to help you overcome this challenge.
Book a call today and let us help get you full financial transparency during divorce proceedings.
Opinions expressed are those of the author and are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
