Hidden Assets and Divorce

BRIDGEWATER, NJ, May 24, 2013 (Press-News.org) Hidden assets and divorce

As many people feel the financial pressure of an economy slowly recovering from the "Great Recession," they may hold on tightly to any funds or assets they have, especially if a divorce is on the horizon. However, spouses are required to disclose the full value of their assets in divorce, and uncovering any hidden assets is important to achieving a fair financial settlement.

Full disclosure is required

In the divorce process , as well as when planning for the possibility of a divorce with a pre-nuptial agreement, both individuals must disclose their assets and debt honestly and fully. If one of the spouses has been considering divorce for a while, or if a spouse enters into a marriage with significantly greater income or assets than the other, he or she may be tempted to exclude some assets from the shared financial picture. This can lead to negative consequences for both spouses, though.

There are several common ways that people attempt to hide assets or divert funds. Some of these include:

- Creating a custodial bank account for a child with the adult's money
- Keeping cash in the form of travelers' checks
- Over-withholding taxes to get a refund after the divorce is complete
- Deferring salary payments, commissions or performance bonuses
- Buying antiques, jewelry or artwork
- Repaying a fake loan from a friend

Uncovering hidden assets

If a spouse suspects that the other may be hiding assets, a few techniques may be used to uncover them. First, examining the couple's income tax returns can be very revealing. Tax returns show the sources and amount of one's income, and schedules filed with the tax return can provide even more information about funds that may be located in a foreign account or related to a business.

In addition, the couple's bank accounts and credit reports should be analyzed. Deposits made could reveal income from a secret stock or bond that pays dividends or interest. Conversely, unusual withdrawals may signal furtive activity. Further, credit reports can show open credit cards or other previously unknown lines of credit.
If you are going through a divorce, it is critical to have an accurate understanding of you and your spouse's financial circumstances. An experienced divorce lawyer knows how to discover hidden assets and help ensure you receive a fair financial settlement in the divorce. Contact a divorce attorney for more information specific to your situation.

The Law Offices of Leonard A. Weitzman, LLC, is a Bridgewater-based law firm providing comprehensive family law services to clients throughout New Jersey.

Website: http://www.weitzmanlaw.com/