How Are Assets Commonly Hidden During a Divorce?

Divorce isn’t just an emotional journey—it’s a financial one too. While the law requires marital property to be divided fairly, some people try to hide assets to claim a bigger share. If you suspect this might be happening in your divorce, knowing the signs and tactics is key to protecting what’s rightfully yours. At Arami Law, our lead attorney brings over 20 years of experience in uncovering hidden assets and helping clients secure their fair share. In this post, we’ll shed light on some common methods spouses use to hide assets and provide actionable steps to take if you suspect financial foul play.

Common Methods of Hiding Assets

Hiding assets during a divorce can be a sophisticated and deliberate act. Below are the most common tactics used to obscure financial holdings from the divorce process.

A. Misreporting Income and Revenue

Misreporting income is frequently used to mask assets for individuals who own businesses or control revenue streams. Here are some common ways this deceit is carried out:

• Underreporting income from self-owned businesses or freelance work.  
• Delaying client invoices until after the divorce is finalized hides potential revenue streams.  
• Paying vendors early to lower apparent cash balances.  
• Conducting cash-only transactions to avoid creating a paper trail.  
• Falsifying expenses, such as inflating business costs to reduce declared income.

These tactics can create a false financial picture, making it challenging for the other party to claim an equitable share in the divorce settlement.

B. Transferring Assets to Another Party

Another common tactic includes temporarily transferring assets to a third party. This often involves:

• Titling major assets, like real estate or vehicles, in the name of family members or friends. These individuals may hold the assets temporarily and return them once the divorce is finalized.  
• Creating financial accounts under someone else’s name to hold money that would otherwise be included in the marital property.  

Detecting these transfers requires a detailed review of recent financial transactions and asset ownership records.

C. Moving Assets Overseas

Foreign accounts represent another layer of complexity in asset hiding during a divorce. Some individuals may:

• Purchase properties in foreign countries to place them outside the jurisdiction of the divorce court.  
• Establish foreign trusts to hold a portion of their wealth.  
• Open overseas retirement accounts where marital property can be stashed and hidden from a spouse.

While uncovering offshore accounts is challenging, forensic accountants and legal professionals with experience in international finance can help locate these hidden investments.

D. Undervaluing Assets

Another strategy involves intentionally undervaluing various assets. This can occur when:

• Business owners lowball the valuation of their company during divorce proceedings.  
• Investments and personal holdings such as jewelry, art collections, or vehicles are reported at less than their true value.  

Professional appraisals and valuation experts play a critical role in uncovering and correcting undervalued declarations of property during the division process.

E. Failing to Report Assets

Failing to disclose the existence of assets is one of the most blatant forms of hiding wealth during a divorce. Examples include:

• Undisclosed bank accounts, including those established under alternative names.  
• Failure to disclose investment accounts or retirement plans.  
• Hiding proceeds from significant sales, like selling a car or other high-value items, and failing to report the money earned.  

Unreported assets can significantly impact the fairness of property division. Fortunately, experienced divorce attorneys can use subpoenas, financial disclosures, and investigative resources to uncover what’s been hidden.

What to Do If You Suspect Hidden Assets

If you suspect that your spouse is hiding assets during your divorce, there are key steps you can take to protect your financial interests.

A. Hire a Forensic Accountant

A forensic accountant identifies discrepancies in financial records and can help trace hidden assets. They have experience tracking unreported revenues, analyzing financial statements, and uncovering undisclosed transfers or offshore accounts. Their findings often serve as critical evidence in court proceedings.  

B. Subpoena Financial Records

If your spouse is unwilling to disclose financial records, your attorney can issue subpoenas to obtain the necessary documents. Subpoenas allow access to:

• Bank statements  
• Credit card transactions  
• Tax records  
• Business account ledgers  

Reviewing these records alongside your legal team makes it easier to identify any inconsistencies or omissions.  

C. Consult with a Divorce Attorney

A skilled divorce attorney with experience in asset division and high-worth divorces is essential. They can guide you through the legal process, protect your interests, and ensure no stone is left unturned. Attorneys familiar with complex divorces understand the nuances of asset hiding and have the resources to combat even the most sophisticated schemes.  

Let Us Uncover What’s Yours

Uncovering all assets is essential for a fair property division—don’t let hidden assets leave you at a financial disadvantage as you move forward. If you suspect your spouse is hiding assets, don’t ignore it. Take action, protect your future, and secure the settlement you deserve.

At Arami Law, our team combines legal prowess, strategic thinking, and compassionate support to help our clients protect what matters most. Whether through negotiation or litigation, we will tirelessly advocate for you every step of the way. Contact us today if you suspect hidden assets in your divorce or need legal support.