Is He Hiding Money from You?
Divorce is often a complicated and emotional process. Beyond the pain of separating from a partner, there are financial complexities that must be handled, particularly when it comes to dividing assets.
Unfortunately, not all divorces are fair, and in some cases, one spouse may attempt to hide assets or income to avoid a fair settlement. In Georgia, as in many other states, the law requires that both parties fully disclose their financial situation. However, some individuals will go to great lengths to conceal assets during a divorce.
If you suspect that your husband is hiding money or other assets from you in your divorce, it is critical to recognize the signs and take appropriate steps to uncover the truth.
As Georgia family lawyers, we wanted to write a blog post will outlining common red flags, potential strategies for hiding assets, and the legal steps you can take to ensure that you get a fair settlement.
Understanding the Importance of Financial Disclosure in Divorce
Under Georgia law, both spouses are required to disclose all assets, liabilities, income, and expenses during a divorce. Full and honest financial disclosure ensures that both parties are treated fairly when dividing marital property. When one spouse intentionally hides assets or income, this is referred to as "financial fraud," and it can result in serious legal consequences.
The Georgia Divorce Code is clear: If a spouse intentionally withholds financial information, the court may impose penalties, including awarding a larger share of the marital property to the other spouse. This is why it's important to be vigilant and proactive if you suspect your husband is not being forthcoming about his finances.
Common Signs Your Husband Might Be Hiding Money
While it’s important not to jump to conclusions, certain signs may suggest that your husband is trying to hide assets. Keep an eye out for the following red flags:
1. Sudden Changes in Spending Habits
One of the most common signs that someone is hiding money is a sudden shift in their spending behavior. For example, if your husband has previously been open about his finances and suddenly becomes secretive, this could be a red flag. Watch for:
- Increased spending on luxury items or non-essential purchases without explanation.
- Large, unexplained withdrawals from joint accounts.
- Unusually high credit card charges that seem out of character for your lifestyle.
2. Unexplained Financial Accounts
If you discover that your husband has opened secret accounts without your knowledge, it could be an indication that he is attempting to hide assets. Watch for:
- Hidden bank accounts, credit cards, or investments that you didn’t know existed.
- New credit cards or loans that weren’t discussed.
- Secretive behavior about statements, including hiding or shredding paperwork.
3. Changes in Income or Employment Status
If your husband suddenly claims a significant reduction in income or changes his employment status without clear explanation, this could be a tactic to minimize the value of his earnings during the divorce. Examples of this include:
- Saying his income has dropped unexpectedly.
- Taking on a “side job” without you knowing.
- Refusing to share tax returns, pay stubs, or other proof of income.
4. Shifting Assets or Transferring Property
One common tactic is to move assets to a friend, relative, or business associate before the divorce is finalized. This is usually done to prevent the other spouse from claiming an equitable share of these assets. Watch for:
- Sudden transfers of property, real estate, or business ownership.
- Large gifts to relatives or friends that seem unusual.
- Selling assets for far below their market value.
5. Increased Secretiveness About Financial Matters
If your husband begins to behave more secretively about his finances, this could be a red flag. This might include:
- Refusing to share financial statements or documents with you.
- Avoiding conversations about money.
- Using privacy concerns as a reason for withholding financial information.
6. Unexplained Debts
Another tactic used by individuals attempting to hide assets is the creation of debts that weren't there previously. If your husband suddenly claims large debts, particularly for assets or items you never discussed or agreed on, it may be worth investigating further.
Common Ways People Hide Money in Divorce
Now that you know the warning signs to watch out for, it’s important to understand how your husband might try to hide money or assets. Recognizing these tactics can help you identify whether he is attempting to conceal assets from you.
1. Underreporting Income
One of the most common ways someone may hide money is by underreporting income. If your husband is self-employed or works in a commission-based field, this is particularly easy to do. Methods of underreporting income may include:
- Reporting lower income to the IRS than actually earned.
- Hiding cash payments or tips from clients or customers.
- Failing to report business income.
2. Hidden Bank Accounts and Credit Cards
Some spouses open bank accounts or credit cards in their own name or in someone else’s name to keep funds out of reach during a divorce. This may involve:
- Opening a new checking or savings account at a different bank without your knowledge.
- Using credit cards in the names of friends, family, or business associates.
- Using offshore accounts or foreign bank accounts to stash money out of the country.
3. Overpaying Creditors
A common trick is to pay off credit cards or loans in the months leading up to a divorce. This can make it appear as though your spouse is less wealthy than they are. If your husband suddenly starts making large, unexplained payments on outstanding debts, it may be worth investigating.
4. Shifting Assets to Relatives or Friends
One of the more straightforward tactics is for a spouse to transfer money or property to a relative or friend with the intent of reclaiming it later. This can be a tricky strategy to prove, but it’s one that can leave you with a significantly smaller share of the marital assets.
5. Valuing Assets Lower Than They’re Worth
If your husband has personal assets such as real estate, collectibles, or business ownership, he may undervalue them to make them appear less valuable in the divorce. This can include:
- Giving away valuable assets or selling them for a fraction of their worth.
- Claiming items are worth less than their actual market value.
- Failing to disclose assets such as art, jewelry, or collectibles that have high value.
6. Creating Fake Expenses
Some spouses may try to inflate their expenses or create fake debts to reduce the amount of marital property they owe. This can include:
- Claiming large, fake business expenses.
- Fabricating personal debts to relatives or friends.
- Taking out loans in their name with the intention of not paying them back.
How to Protect Yourself and Uncover Hidden Assets
If you suspect that your husband is hiding money from you, there are several steps you can take to protect yourself and ensure that the divorce process is as fair as possible.
1. Hire a Forensic Accountant
A forensic accountant is a specialized professional who can help trace hidden assets and income. These experts are trained to identify signs of financial fraud and can look into your spouse’s financial history to uncover any discrepancies. They may:
- Analyze tax returns, bank statements, and other financial documents.
- Identify unreported income and assets.
- Help you track down hidden bank accounts, investments, and property.
2. Conduct a Thorough Discovery
In divorce cases, discovery is the process through which both parties exchange financial information. If you suspect your husband is hiding assets, your attorney can request specific documents during the discovery phase, such as:
- Bank statements for all accounts, including offshore accounts.
- Tax returns and W-2 forms.
- Business records, including profit-and-loss statements and balance sheets.
- Information on loans, mortgages, and credit card statements.
3. Use Legal Methods to Investigate
Your attorney can subpoena financial institutions, employers, and other third parties to obtain the necessary documents that might not be voluntarily provided. This can help uncover hidden accounts, assets, and income. In some cases, forensic experts may even use surveillance or electronic tracking to identify hidden assets.
4. Request a Post-Divorce Audit
If you suspect financial misconduct after the divorce is finalized, you can request a post-divorce audit. This can help identify any hidden assets that may have been concealed during the divorce process.
Is He Hiding Assets? Divorce Lawyer Near Me
Divorce can be a complex and stressful process, especially when you suspect that your spouse is hiding money or assets. Recognizing the signs of financial fraud and understanding how assets are concealed is the first step in ensuring you receive a fair settlement.
If you suspect that your husband is attempting to hide money, it is critical to work with an experienced divorce attorney and financial expert who can help uncover hidden assets and ensure that your rights are protected.
Remember, the court takes financial fraud seriously, and if you can prove that your husband was attempting to hide assets, you may be entitled to a larger portion of the marital estate.
At The Sherman Law Group, we are divorce lawyers specializing in helping individuals navigate the complexities of divorce and financial disputes. If you are concerned about your spouse hiding assets, don’t hesitate to contact us for a consultation.
Our experienced legal team will work tirelessly to ensure that you receive a fair and just settlement.