Warning Signs of Hidden Assets During Divorce

For the court to divide assets fairly, both spouses have to be honest about their finances. In California, the court divides community property based on information disclosed by both spouses. This information also determines whether spousal support and child support are ordered. If one spouse hides or disposes of assets, the entire foundation of the divorce agreement is threatened. That’s why, if you suspect that your spouse is hiding assets, you should reach out to a California property division attorney.

The team at the Law Office of Taylor B. Warner, APLC advocates for clients, many of whom have dealt with spouses determined to deny them a fair division of assets. As a California Bar Certified Family Law Specialist, attorney Taylor B. Warner is always looking for ways to help her clients plan for the future and life after divorce. Learn more about your options by contacting our property division law firm at 909-466-5575.

Why Hidden Assets Matter in a California Divorce

California is a community property state. Typically, debts and assets acquired during the marriage belong to both spouses and must be divided equally unless there’s a relevant exception. This includes income, real estate, retirement contributions, business interests, bank accounts, and other assets of value. But when one spouse hides assets and the other party’s property division lawyer does not realize that, it distorts the division of assets. A settlement may appear fair on paper, but because one spouse hid tens of thousands of dollars in assets, it’s actually heavily skewed to favor one party. Hidden assets can also affect child support and spousal support calculations, leaving one spouse without the support they need.

Sudden Changes in Financial Behavior

Abrupt changes in financial behavior are an early warning sign. If your spouse suddenly changes the passwords to shared accounts, has their mail sent elsewhere, freezes your cards, or handles financial matters alone, they may already be working to hide assets. This isn’t always the case; some spouses become more defensive when a marriage ends. However, when it happens at or around the time divorce becomes an option, it’s worth looking into.

Missing or Incomplete Financial Records

A full financial disclosure requires complete financial records. If bank statements, tax returns, pay stubs, retirement account statements, or business records are suddenly missing or inaccessible to you, that means you can’t get a full picture of the marital estate. Your spouse may also be planning to control your access to information to paint it in a way that benefits them.

Unexplained Transfers or Withdrawals

Large cash withdrawals, wire transfers, and payments to unknown accounts should also raise red flags. These transfers may be legitimate, but it’s also possible that your spouse is attempting to get rid of money so they do not have to divide it during divorce. They may transfer money for someone else to hold onto until the divorce is finalized or transfer the money into an account that you do not have access to.

Unfounded Claims of Financial Difficulties

Financial difficulties can absolutely be real during divorce; job loss, a drop in income, business struggles, and economic stress can all make a difficult time even harder. But if your spouse’s lifestyle doesn’t change, despite their claims of going broke, they may just be laying the groundwork for future claims. By telling you about this early, they hope to give it more legitimacy when discussions about the division of assets start.

Overpaying Taxes, Debts, or Business Expenses

Some individuals may overpay taxes, debts, or business expenses. That money will then be refunded to them after the divorce is finalized. To you and your property division attorney, the money may appear to be spent on legitimate expenses. In reality, they are just shuffling funds around to benefit themselves.

Valuable Property Disappearing

This is a significant warning sign that warrants an in-depth investigation by your property division lawyer. Your spouse may be attempting to liquidate valuable assets in an effort to make funds easier to hide.

Plan for Your Future With a California Property Division Law Firm

If you’re concerned that your ex is attempting to move or hide assets, it’s better to intervene earlier rather than later. Schedule a consultation now by calling us at 909-466-5575 or contacting us online.

Taylor Warner

Taylor has always been an advocate. Growing up the middle child with an older and a younger brother, Taylor developed a strong voice and personality and has always felt strongly about helping others. Becoming a lawyer seemed to fit Taylor’s personality and character – she is a strong leader and a bold advocate. Learn more here.