Going through a divorce can be a challenging and emotionally draining process. It’s already hard, but things only get more difficult if there are suspicions of hidden assets. In Pennsylvania, asset disclosure is required in divorce proceedings, and failing to disclose assets can have serious implications on property division. If you suspect your spouse is hiding assets, learn what to do and how to seek professional assistance with a family law attorney to investigate the situation.
What Are the Divorce’s Asset Disclosure Requirements?
During a divorce, both parties are legally required to disclose their assets. This includes individual and shared assets, encompassing everything from bank accounts, stocks and bonds, real estate, business interests, retirement accounts, and valuable collectibles. This regulation ensures a fair and equitable property division in the divorce settlement.
Pennsylvania law views marriage as an economic partnership, and upon dissolution of that partnership via divorce, each partner is entitled to his or her fair share. If one spouse hides assets, it would skew the balance of the settlement, potentially leaving one partner with less than what he or she is legally entitled to.
Non-disclosure of assets affects the financial outcome of a divorce and bears legal consequences. A spouse found concealing assets can face penalties such as fines, an unequal division of assets favoring the non-offending spouse, or even perjury charges. By understanding the gravity of the asset disclosure requirements, you can better prepare and stay vigilant in your divorce proceeding to ensure fair division and prevent any potential foul play.
Signs Your Spouse May Be Hiding Assets
Identifying potential signs of hidden assets can be difficult, so you should know what to look for. A sudden change in your spouse’s financial behavior may be a red flag. Some common indicators include unusual spending habits, a sudden decrease in account balances, the disappearance of valuable assets, or unexplained withdrawals and transfers.
One common tactic used to hide assets during divorce proceedings is transferring assets to a third party. The spouse may temporarily gift or loan assets to a friend or family member until the divorce is finalized. Another common method is overpaying creditors or the IRS only to receive a refund after the divorce. Some spouses may even create fake debts or expenses to justify the decrease in marital property.
Steps to Take When You Suspect Asset Concealment
If you suspect your spouse is hiding assets, gather your financial records and documentation immediately. This may include bank statements, tax returns, pay stubs, investment accounts, deeds to properties, and other financial documents. A comprehensive financial portfolio will allow you to see where discrepancies may occur.
Creating a timeline of financial transactions could also assist you in identifying any irregularities. Mark significant events such as large purchases or withdrawals, the opening or closing of accounts, and any unexpected financial activities. It may also be worthwhile to compare current financial behavior with past behavior to see if any significant changes have occurred.
Utilizing Professionals in Asset Investigation
Uncovering hidden assets can be complex, but you don’t have to navigate it alone. Enlisting the help of a forensic accountant or a financial advisor can prove invaluable. They are skilled at thoroughly exploring finances, identifying inconsistencies, and tracing the source of unexplained funds to uncover wrongdoing.
Legal representation is equally crucial in this process. An experienced divorce attorney can guide you on legal rights and procedures, assist in gathering evidence, and take proactive steps like filing a court order to freeze assets while the investigation is ongoing.
Legal Actions for Asset Disclosure
You can take legal action if your spouse hasn’t been forthright in their financial disclosures. Your attorney can file a request for production, a legal request for your spouse to produce specific documents. You may also serve a subpoena to third parties who may have relevant financial information.
In some cases, depositions may be used to gather additional information. These are formal interviews conducted under oath, allowing the questioning of your spouse or other relevant individuals about the hidden assets.
Maintaining Transparency in Your Financial Matters
While searching for hidden assets, you must maintain transparency in your financial matters. Being proactive and honest in your financial disclosures assures the court of your integrity and can work in your favor.
Keep detailed records of your assets and finances. Document all your financial transactions and maintain copies of all financial disclosures you make during the divorce process.
Find Hidden Assets During a Divorce Before It’s Too Late
Vigilance in monitoring for hidden assets during a divorce is not merely an option, but a necessity. Addressing asset concealment early in divorce proceedings safeguards your rights and upholds the fairness of the property division.
At Grace Legal, we understand the trials involved in a divorce. For tailored advice specific to your situation, call (717) 635-8780 to schedule a consultation with one of our experienced attorneys.
