When filing for divorce, one of the most contentious aspects for most couples is the division of their assets. Often, spouses may fail to agree on how to distribute the assets amongst themselves, often leading to court intervention. However, in some cases, one spouse may hide assets in order to receive a better outcome. As such, understanding the signs of asset concealment and the legal steps you must take to protect yourself is critical. The following blog explores what you should know about these matters, including the importance of working with Somerset County property distribution attorneys to assist you during these complicated issues.
What Does It Mean to Hide Assets in a New Jersey Divorce?
Asset concealment occurs when one spouse, in hopes of receiving a better outcome in the divorce, intentionally misrepresents, undervalues, or transfers property. Failing to provide accurate information can result in serious legal penalties and a lack of credibility in court.
Under New Jersey law, both spouses are legally required to provide full and accurate financial information during a divorce, as the state adheres to the equitable distribution statute for dividing marital assets. Intentionally concealing assets violates this obligation and can lead to court sanctions.
Common Methods Spouses Use to Hide Assets in New Jersey
- Transferring money to friends or family temporarily
- Opening or maintaining hidden bank accounts
- Overpaying taxes to receive a larger return after the divorce is finalized
- Delaying bonuses or commissions until the divorce is over
- Underreporting business income
- Purchasing high-value items to sell later
- Creating fake debts to reduce the appearance of net worth
Warning Signs Your Spouse May Be Concealing Assets in NJ
If you are going through a divorce, understanding the signs that your spouse may be intentionally concealing assets is critical. Financial secrecy can often leave patterns, so familiarizing yourself with the most common signs will allow you to act quickly.
Behavioral and Financial Red Flags
- Refusing to submit financial records
- Withdrawing large portions of money from joint accounts
- Giving expensive gifts to friends and family
- Asking you to sign documents without allowing you to review the terms and conditions
- Changing the passwords on your financial accounts
- Having financial information mailed to a different address so you won’t see it
- Spending outside of their financial means
How Hidden Assets are Discovered in New Jersey Divorce Cases
New Jersey law allows for the use of formal tools that provide each spouse the opportunity to investigate financial discrepancies. This is because the courts expect full transparency and disclosure of finances, and discovery of violations can lead to sanctions.
It’s important to understand that, while these cases are heard on an individual basis, the methods used by the courts apply across the state. As such, the same financial disclosure statements will be required regardless of which county the divorce occurs in.
Legal Tools Used to Uncover Concealed Assets
- Interrogatories that require sworn, written statements
- Requests for financial information, like bank statements, tax returns, and investment records
- Review of previous tax returns to uncover inconsistencies
- Tracing cryptocurrency and investments
- Comparing bank statements and tax returns
- Examining business expenses to look for signs of personal spending
- Depositions under oath regarding financial activity
- Business valuations
- Forensic accounting investigations
- Subpoenas to employers, banks, and other financial institutions
If you have reason to believe that your spouse is concealing assets to receive a more favorable outcome during your divorce, it’s imperative to take the steps to protect yourself and your best interests in these matters. As such, the first thing you should do is immediately contact your attorney.
What Happens if a Spouse Is Caught Concealing Assets in New Jersey?
If your spouse is discovered to be concealing assets, they can face serious consequences as a result. This is because full honesty and transparency are required.
Possible Legal Consequences
- Awarding a larger share of marital assets to the innocent spouse
- Ordering payment of the other spouse’s legal fees
- Being held in contempt of Court
- Facing charges of perjury if the other spouse lied under oath
- Reopening closed settlements if concealment is discovered at a later date
Why Early Legal Intervention is Critical
Taking action as soon as concealment is involved can help avoid the disappearance of assets. As such, courts may be able to issue temporary financial restraints to stop transfers and unusual spending.
Steps to Take if You Suspect Asset Concealment
- Preserve copies of all the financial records you can access
- Do not confront your spouse in a manner that can lead to further concealment
- Notify your attorney immediately upon discovery of suspicious financial activity
- Request formal discovery early
- Inquire about whether or not forensic accounting is necessary
Contact Our Dedicated Somerset County Divorce Firm
As you can see, these matters can be incredibly difficult to navigate. That is why it is critical to connect with an experienced attorney with the Siragusa Law Firm to help you during these complex legal and financial issues. Our firm understands how important a fair outcome is for you, which is why we will do everything in our power to help you receive the best possible outcome for your circumstances. Contact us today to learn more.