How Do Spouses Hide Assets During Divorce?

The divorce process can be quite daunting, even when both spouses agree to end the marriage and can resolve the terms of their case fairly easily. However, if you suspect that your spouse is hiding assets, it creates even more challenges you will have to overcome. Our Media property division lawyer can help you determine if your spouse is hiding assets and locate them so you obtain the fair settlement you deserve.

What is Full Financial Disclosure in Divorce? 

In Delaware County, and throughout the rest of Pennsylvania, both spouses in a divorce have a legal obligation to provide full financial disclosure. Each party must submit a full list of the assets they own, the liabilities and debts they carry, the income they earn, and their regular expenses. Failing to comply with this law can result in serious consequences, including criminal fraud charges. Full financial disclosure is meant to ensure that both spouses have a full understanding of each other’s finances, and that each receives a fair settlement.

How Do People Hide Assets? 

One of the most common ways people hide assets during divorce is by gifting property to friends or family members. They may give away valuable items, move money into a joint account, or even create fraudulent transactions that show property being sold, even though it is never transferred to someone else.

Another common tactic used to hide assets during divorce is underreporting income. A spouse may intentionally report less income than what they actually earned in order to lower the amount of alimony or child support they may be ordered to pay. Some of the most common ways spouses underreport income is to defer commissions or bonuses until the divorce is final, fail to disclose cash transactions, or underreport business revenue.

People may also create a fake debt in order to hide assets. They may inflate existing debts, fabricate loans, or engage in fraudulent transactions to make it appear as though they have more financial obligations than they actually do. A person may claim to owe money to a family member or friend, and even create false documents to support their claim. Business owners may also create fake business expenses to inflate the amount of debt they say they owe.

Discovering Hidden Assets 

If you suspect that your spouse is hiding assets, you may think there is nothing you can do about it. Fortunately, this is not true. There are many ways to discover hidden assets, but it is essential that you work with an attorney. A lawyer can conduct a thorough financial analysis, reach out to a forensic accountant, and subpoena financial records that can prove and locate hidden assets.

Our Property Division Lawyer in Media Can Discover Assets 

At Barbara Flum Stein & Associates, our Media property division lawyer can ensure that your spouse does not use unfair tactics that will prevent you from receiving the fair settlement you deserve. Call us now at 610-565-6100 or chat with us online to schedule an appointment with our experienced attorney and to get the legal help you need.

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