You suspect your spouse is hiding money, investments, or property to cheat you in the divorce. Asset concealment is unfortunately common—and it’s illegal. Courts take a dim view of spouses who hide assets, and you have legal tools to uncover hidden wealth and ensure a fair division of property.
Quick Answer
Yes, you can take legal action against a spouse who hides assets in a divorce. Hiding assets is considered fraud, and courts can impose serious penalties including awarding you a larger share of marital property, ordering your spouse to pay your legal fees, and potentially holding them in contempt. You can also reopen a finalized divorce if you later discover hidden assets.
Why Spouses Hide Assets
Common motivations include:
- Reducing the apparent size of the marital estate
- Minimizing child support or alimony obligations
- Punishing the other spouse
- Maintaining control over finances post-divorce
- Simply not wanting to share
Common Ways Assets Are Hidden
| Method | How It Works |
|---|---|
| Underreporting income | Claiming lower earnings, deferring bonuses, hiding cash payments |
| Transferring assets to friends/family | Fake loans or gifts that get “returned” after divorce |
| Creating fake debts | Claiming money is owed to confederates to reduce net worth |
| Undervaluing businesses | Manipulating books to make a business appear less valuable |
| Cryptocurrency | Hiding funds in hard-to-trace digital currencies |
| Offshore accounts | Moving money to foreign banks with privacy protections |
| Safe deposit boxes | Stashing cash, jewelry, or valuable items |
| Overpaying creditors | Paying extra to IRS or credit cards, then getting refunds after divorce |
| Custodial accounts | Putting money in children’s names |
| Delaying contracts or deals | Postponing income or windfalls until after divorce |
Legal Obligations to Disclose
During divorce, both spouses have a legal duty to:
- Act in good faith and fair dealing
- Provide complete, honest disclosure of all assets and debts
- Produce financial documents when requested
- Truthfully answer questions under oath
This duty continues from separation through final property division. Violating it is fraud.
Tools to Discover Hidden Assets
Formal Discovery
- Interrogatories: Written questions your spouse must answer under oath
- Requests for production: Demands for financial documents
- Depositions: Sworn testimony under questioning
- Subpoenas: Court orders to third parties (banks, employers, accountants)
Forensic Accountants
- Experts at tracing hidden assets and unusual transactions
- Can analyze business records and tax returns
- Identify lifestyle inconsistencies (spending more than reported income)
- Prepare reports for court
Private Investigators
- Track down hidden property
- Document lifestyle evidence
- Locate secret accounts or businesses
Warning Signs to Watch For
- Spouse becomes secretive about finances
- Mail or financial statements stop coming
- Sudden claims of business problems or losses
- Cash withdrawals or new accounts in their name only
- Lifestyle doesn’t match claimed income
- Reluctance to provide financial information
Consequences for Hiding Assets
If Discovered During Divorce
- Larger share of assets awarded to you: Courts may give you a disproportionate share as penalty
- Attorney fees: Spouse may be ordered to pay your legal costs
- Adverse credibility finding: Judge won’t believe them on other disputed issues
- Contempt of court: Fines and potentially jail time
- Perjury charges: Criminal penalties for lying under oath
If Discovered After Divorce
- Reopening the case: Court can set aside the divorce judgment
- Award of hidden assets: You may receive all or most of what was hidden
- Monetary sanctions: Penalties for fraud
- Time limits apply: Usually must act within a certain period (often 2 years from discovery)
After Divorce: Discovering Hidden Assets
If you discover hidden assets after your divorce is final:
Steps to Take
- Document what you’ve found
- Consult with a family law attorney
- File a motion to reopen the case (usually requires showing fraud)
- Request discovery on the newly discovered assets
- Seek appropriate division plus sanctions
Time Limits
Most states have deadlines—often 2 years from when you discovered or should have discovered the hidden assets. Don’t delay.
What You’ll Need to Prove
- The asset existed at the time of divorce
- It wasn’t disclosed
- The non-disclosure was intentional
- You didn’t know about it during the divorce
- You acted reasonably in not discovering it earlier
Protecting Yourself
Before Divorce
- Gather financial documents while you have access
- Copy tax returns, bank statements, investment records
- Know your household finances
- Note any sudden changes in income or assets
During Divorce
- Hire an experienced divorce attorney
- Request complete financial disclosure
- Use discovery tools aggressively if you suspect hiding
- Consider a forensic accountant if significant assets are at stake
- Don’t rush the settlement
Frequently Asked Questions
How do I know if my spouse is hiding assets?
Warning signs include sudden secrecy about finances, mail going elsewhere, claims of business losses that don’t match lifestyle, unexplained withdrawals, and reluctance to provide documents. Trust your instincts—if something seems wrong, investigate.
Can I hire a forensic accountant?
Yes. For complex financial situations or substantial assets, a forensic accountant can be worth the cost. They have expertise in tracing hidden assets and can testify in court.
What if we had a prenup—can assets still be hidden?
Yes. Hiding assets violates disclosure obligations regardless of prenuptial agreements. In fact, prenups can be invalidated if one party concealed assets during the marriage or at signing.
My divorce is final. Is it too late?
Not necessarily. If you can prove fraud, courts can reopen cases. But time limits apply—consult an attorney promptly after discovering hidden assets.
Can my spouse hide money in cryptocurrency?
They may try. Cryptocurrency is increasingly used to hide assets, but it’s not untraceable. Forensic specialists can often track crypto transactions. Courts can order disclosure of digital wallets.
When to Contact a Lawyer
Consider consulting a family law attorney if:
- You suspect your spouse is hiding assets
- Your spouse is uncooperative with financial disclosure
- There are business interests or complex finances
- You’ve discovered hidden assets after your divorce
- You need help using discovery tools effectively
- Significant assets are at stake
Divorce attorneys experienced in complex financial cases know how to uncover hidden assets and protect your interests. Given what’s at stake, professional help is often essential.
