Offshore assets, like bank accounts, investments, businesses, or real estate outside the United States, make dividing property during divorce more complex. In New Jersey, spouses must disclose all of their property, even property held in another country. If the spouses obtained the offshore property during the marriage, it is most likely marital property. Per New Jersey law, couples must divide their marital property equitably.
At Weiner Law Group, our experienced legal team delivers practical, personalized solutions for divorces involving significant assets, international property, or complex financial issues. With decades of experience and a reputation for creativity, teamwork, and integrity, we help clients address complex financial considerations such as offshore property and hidden accounts.
New Jersey Asset Division in Divorce
New Jersey law requires divorcing spouses to divide property equitably, which means dividing it fairly, not necessarily equally.
Most couples settle without asking a court to resolve their property division, but use New Jersey law to guide negotiations. If they come to terms outside of court, couples can propose a joint separation agreement that divides their property as they want.
Marital vs. Separate Property
Spouses must divide their marital property, which includes most assets acquired during the marriage. Separate property, which does not have to be divided, includes assets that either spouse earned or obtained:
- Before marriage,
- After separation,
- Through inheritance,
- Through gift, or
- As earnings from separate property.
Correctly categorizing each asset may require tracing the asset back in time to determine when the spouse acquired it.
Disclosure Requirements
Both parties in a New Jersey divorce must fully disclose all of their property. Full financial disclosure includes listing all assets and liabilities, regardless of their locations or whether the spouse believes they are marital or separate. Failing to disclose offshore or domestic assets can result in serious legal consequences, including court-imposed sanctions or a lopsided property distribution in favor of the other spouse.
What Are Offshore Assets?
Offshore assets are any assets held in a foreign country, outside the legal authority of the U.S. These assets differ from “onshore” assets, which are located within the U.S. and typically involve domestic banks, businesses, and property governed solely by U.S. law.
Offshore assets may include:
- Foreign bank or brokerage accounts,
- Real estate in another country,
- International business interests,
- Trusts or foundations established abroad, and
- Cryptocurrencies stored in offshore platforms.
Offshore accounts are subject to equitable division if they qualify as marital property based on when and how the spouse acquired them.
Valuation of Offshore Assets
Dividing property in a New Jersey divorce requires a fair and accurate valuation of all marital assets, including those outside the United States. Offshore assets can be challenging to assess due to:
- Foreign regulations,
- Currency exchange, and
- The complexity of international financial structures.
Below are key components courts and legal teams consider when determining the value of offshore assets in a divorce.
Currency Conversion and Exchange Rates
When spouses own offshore assets in a foreign currency, they must convert that currency to U.S. dollars. Because exchange rates fluctuate, getting an accurate valuation may require spouses to consider trends over multiple dates to determine a fair conversion rate.
Professional Appraisals for International Property
If offshore assets include real estate, business interests, or physical property, valuation often requires expert assistance, such as:
- Appraisals from certified international valuators familiar with local property laws and markets;
- Independent business valuations to assess the worth of foreign companies or ownership shares; and
- Comparative sales or income-based methods, depending on the asset type.
These experts help ensure the valuation reflects current market conditions.
Accessing Foreign Financial Records
Foreign financial records may be in a language you do not understand or may involve systems you cannot easily access from abroad. So, obtaining records from foreign institutions can be challenging. Spouses may need to:
- Translate documents into English for legal use;
- Authenticate international financial statements, contracts, or deeds to align with U.S. authentication standards; and
- Work with professionals abroad to gain access to restricted records.
Accessing foreign financial records and ensuring their accuracy often requires professional assistance.
Valuing Trusts and Hidden Assets Abroad
In an attempt to hide assets, spouses may place them offshore in trusts, foundations, or shell companies. Spouses may have to investigate where these hidden assets are before they can value them. Finding hidden assets might require more professionals, particularly forensic accountants specializing in offshore assets.
Getting Expert Valuations
In high-asset or contested divorces, experts should complete all offshore asset valuations. Each spouse can get their own expert to appraise the property’s value, and the parties can use those valuations to reach a resolution.
International Law and Tax Implications
International property may trigger special issues related to international law, including:
- Foreign laws may restrict a U.S. court’s ability to divide or seize overseas assets;
- International treaties or agreements may or may not support enforcing the property division within a specific country’s borders;
- Sales may implicate tax obligations in the U.S. and abroad; and
- U.S. law may require reporting on the offshore property, such as the FBAR (Foreign Bank Account Report) or FATCA (Foreign Account Tax Compliance Act).
Divorce lawyers who work with international property can help you address these issues and connect with professionals in other countries.
Protecting Your Interests
If you believe your spouse is hiding wealth or failing to disclose offshore accounts, you can:
- Consult a divorce attorney with experience handling international property;
- Gather financial documents like tax returns and details about transfers of money, like bank statements;
- Monitor for red flags, such as unexplained withdrawals, secrecy about travel, or recent changes to account access; and
- Seek a forensic analysis if you suspect hidden accounts or improper asset transfers.
Your attorney should guide you through each step to achieve full financial disclosure from both spouses.
Speak with Weiner Law Group Today
If you are going through a divorce involving offshore assets, Weiner Law Group is here to help. Our attorneys have decades of experience with complex property division cases in New Jersey, including those involving international property, hidden accounts, and sophisticated financial structures. Call us at 973-403-1100 or Contact us online to schedule a confidential consultation.