When one spouse hides income, property, or investments during divorce, they deprive the other spouse of their fair share of the couple’s marital property. Uncovering hidden assets in divorce can be challenging. Fortunately, there are ways to trace hidden property, including cross-referencing various documents and accounts and consulting professionals.
At Weiner Law Group, we understand the financial stakes of divorce. Our experienced New Jersey attorneys know how to uncover concealed assets, challenge incomplete disclosures, and advocate for fair division.
Whether through negotiation or litigation, we go above and beyond to protect what matters most. With decades of experience and a reputation for creative, results-oriented legal solutions, our team is here to help.
You don’t have to sit in the dark wondering how to navigate hidden assets in this difficult time. Get clarity today by calling us at 973-403-1100 or by contacting us online.
Property Division in New Jersey Divorce
In divorce, New Jersey law divides assets into separate and marital property. Separate property includes property either spouse obtained before the marriage, as well as inheritances or gifts given solely to one spouse during the marriage.
Marital property includes most assets and debts obtained during the marriage, regardless of whose name is on the title or account. Combined, all marital property is the couple’s marital estate.
Spouses can use prenuptial or marital agreements to establish that certain properties are separate, even if obtained during the marriage. They can also, deliberately or accidentally, convert separate property into marital property by commingling funds.
Typically, courts only divide marital property during divorce.
Equitable Distribution
New Jersey law requires courts to divide marital property equitably. Dividing equitably means a just and reasonable division under the circumstances, not necessarily a 50/50 split. To determine fair division, courts consider factors like:
- How long the couple was married;
- Each spouse’s income, education, and earning capacity;
- Contributions to the household, including child-rearing and supporting the other spouse’s career;
- Custody arrangements and each party’s need for financial stability; and
- The marital standard of living.
Courts also consider wrongdoing by one spouse that affects the value of the marital estate. This can include actions such as:
- Intentional waste, like withdrawing funds to buy a boat to spite your partner;
- Intentional decreases to value, like scratching up a car; and
- Attempts by a spouse to hide assets.
In these situations, courts may penalize the wrongdoer by awarding a greater share of the marital estate to the other.
Required Financial Disclosure in Divorce
Both spouses are legally required to provide complete financial disclosure during divorce proceedings. Each must fully disclose details about their separate and community property, including income, assets, debts, and spending. They may need to provide:
- Tax returns and income records;
- Bank account statements and credit card transactions;
- Investment and retirement account information; and
- Property deeds, mortgage statements, and vehicle titles.
If a spouse fails to disclose any of their assets, the court can:
- Impose sanctions, like requiring the concealer to pay for the other spouse’s attorney fees or court costs;
- Question the spouse’s credibility and trustworthiness;
- Redistribute assets to favor the honest spouse; or
- Hold the concealer in contempt of court, which can result in fines and possible jail time.
If the court finalizes a divorce where a spouse failed to disclose assets, the other spouse is not out of luck. They can ask the court to reopen the case and have the judge equitably redistribute assets, including penalizing the concealer by favoring the other spouse.
Common Signs of Hidden Assets in Divorce
If your spouse hides assets, you may notice:
- Large cash withdrawals or sudden account transfers,
- Secretive behavior around financial accounts or passwords, or
- Claims of decreased income that do not align with spending habits.
Recognizing the signs is the first step toward knowing whether there is a problem in need of investigation.
Methods for Asset Tracing in Divorce
Through asset tracing in divorce, you can uncover the truth. Uncovering hidden assets in divorce requires a strategic, evidence-based approach and, generally, professional assistance. Your lawyer can guide you through several methods to trace hidden assets in a divorce investigation.
Review Financial Documents
Comparing bank statements, tax returns, and financial disclosures may expose inconsistencies or omissions. When we investigate hidden assets, we may, for example:
- Look for assets listed on loan applications but not in divorce disclosures;
- Examine patterns of withdrawals, deposits, or transfers to unknown accounts; or
- Track credit card transactions and large purchases that do not align with reported income.
If you cannot access accounts or documents, your attorney can subpoena them.
Examine Business Records
If your spouse operates a business, they may use it to mask income or assets, by, for example:
- Underreporting income or delaying contracts until after the divorce,
- Paying fake vendors or inflating expenses, or
- Using fictitious employees to funnel funds out of the business.
We may consult a qualified financial professional, such as a forensic accountant or business appraiser, to determine the value of business assets as we investigate the records.
Conduct a Lifestyle Analysis
A lifestyle analysis involves comparing your spouse’s reported income with actual spending habits and asset accumulation, by, for example:
- Reviewing past spending patterns,
- Assessing whether current income could support spending, and
- Identifying spending and purchases that the spouse makes using a different name.
A lifestyle analysis can be compelling in high-net-worth cases or divorces involving business ownership.
Subpoena Financial Institutions
If your spouse refuses to produce complete financial records, your attorney can subpoena them. A subpoena is a legal order that requires a person or institution to hand over specific records, such as:
- Bank accounts, including joint, individual, or offshore accounts;
- Mortgage documents, loan applications, and wire transfers; or
- Retirement and investment account histories.
You may also subpoena your spouse for documents in their possession.
Search Public Records
Public records can also help uncover assets and financial activity, through, for example:
- Real estate ownership records and property deeds,
- Vehicle registration and title transfers, and
- Business formation documents and corporate filings.
Your lawyer can help you complete these searches.
Work with Forensic Accountants
Forensic accountants are financial specialists trained to investigate money matters, especially when deception or complexity is involved. They can:
- Trace cash flow and reconstruct income,
- Identify inconsistencies in tax filings and financial reports, and
- Value assets that may be hidden or misrepresented.
In high-asset or complex divorces, forensic accountants often serve as expert witnesses.
Find What Has Been Hidden with Weiner Law Group
If you believe your spouse is hiding assets, Weiner Law Group can help. Our New Jersey divorce attorneys understand how to investigate complex financial matters and bring hidden property to light. We handle high-net-worth cases, complex trust asset structures, and divorces involving business interests with precision and discretion.
Call Weiner Law Group at 973-403-1100 or contact us