Hidden assets can affect how your marital property gets divided, but they are not always easy to spot. You may notice something does not add up before you know exactly what is wrong, especially if your spouse handled most of the finances. Here are five signs to watch for.
Your spouse suddenly has less money than expected
A sudden drop in your spouse’s reported income or available cash can be a red flag. Watch for unexplained withdrawals, lower reported earnings or sudden financial problems that did not exist before the divorce.
Financial records that do not match your lifestyle
Compare the income your spouse reports with the expenses your household regularly pays. Expensive purchases, frequent travel, large investments or other major expenses may be difficult to reconcile with a much lower reported income.
Accounts or assets suddenly disappear
An account you knew about may no longer appear in the financial records. The same can happen with investments, real estate or other property. Pay attention to assets that disappear, accounts that close or property that changes ownership shortly before or during the divorce.
Your spouse controls most of the financial information
You may have limited information if your spouse handled the household accounts, investments, tax returns or business finances. You may not know about every account or investment, and you may not have access to older records that could show changes in income, spending or ownership.
The explanation keeps changing
Pay attention to conflicting explanations about the same income, account, property or debt. For example, your spouse may give one explanation for a missing account and a different explanation later. The same applies when reported income, expenses or ownership information changes without a clear reason.
Look closer when the numbers do not add up
If something about your spouse’s finances does not make sense, do not ignore it simply because you cannot explain it yet. Keep the financial records you have and note anything that changes or does not match. An attorney can help you determine what information you can request and how to address discrepancies during your divorce.
