Practically every aspect of a divorce involves finances in one way or another. How marital property gets divided, whether and how much spousal support is ordered, and what child support is owed are all fundamentally economic matters.
That means that if your spouse hides money before divorce, you or your children could wind up with less than you’re legally entitled to. Fortunately, you have legal options, and an experienced family law attorney at Caulder & Valentine Law Firm, PLLC can help you explore them.
What Are Hidden Assets in Divorce?
People going through a divorce sometimes attempt to conceal income or property from their spouse and the court, often by failing to disclose it or using deceptive accounting methods to minimize its apparent value. The goal may be to avoid splitting marital assets with their spouse during property division or to avoid child and spousal support obligations.
Is Hiding Money in a Divorce Illegal in North Carolina?
During a divorce case, N.C.G.S. § 50-21 requires both spouses to provide a full, accurate disclosure of their finances to facilitate a fair and equitable property division and calculation of spousal or child support.
If a spouse hides assets, property, or income during divorce, they may violate court rules or commit perjury. Courts may impose various remedies for affected spouses, including:
- Holding the spouse in contempt of court
- Ordering them to pay the affected spouse’s related expenses
- Awarding the affected spouse a greater share of the marital estate
- Considering the marital misconduct when determining spousal support
Common Ways Assets Are Hidden
A spouse who wants to conceal money or assets during divorce proceedings may use various strategies, including:
- Opening a separate bank account and funneling money into it
- Transferring securities or cryptocurrencies into new accounts
- Placing real estate or other property into LLCs or corporations
- Transferring money and property to offshore financial accounts or trusts
- Using cash to purchase cryptocurrency
- Overpaying taxes to trigger a later refund
- Using “creative” accounting to reduce apparent business revenue or income
- Transferring real estate to family or associates for little or no value in return
- Using their business to make large, unnecessary purchases or take out unnecessary debt
Common Signs Your Spouse May Be Hiding Money
Some of the most common signs of hiding assets before divorce include:
- New or previously undiscovered financial accounts
- Lost access to bank or brokerage accounts
- Changed passwords
- Missing account statements or financial records
- New P.O. boxes
- Unusual transfers of money or large withdrawals of cash
- Large, unexpected purchases
- Sudden reductions in income or business revenue
You should also be concerned if your spouse refuses to discuss financial matters or gets angry or defensive when you ask financial questions. If you notice any of these red flags, talk to an experienced divorce attorney as soon as possible.
What Should You Do If You Suspect Hidden Assets?
When you believe your spouse may have concealed assets before your divorce, steps you can take to protect your financial interests include:
- Keep all relevant financial records. That includes bank statements, brokerage accounts, mortgage or loan statements, property deeds and titles, and tax returns.
- Avoid confronting your spouse prematurely. If you confront your spouse with suspicions about hidden assets, they may take further steps to make it harder to find or track.
- Document suspicious activity. Detail any concerning behavior by your spouse, such as new financial accounts or unexpected large purchases or expenses.
- Consult an experienced divorce attorney. Our divorce lawyers can explain your legal options if your spouse has tried to hide money from division or support calculations.
- Consider forensic accounting if appropriate. A forensic accountant can review financial documents to locate hidden assets or income and trace them back to your spouse.
- Use formal discovery tools during litigation. During a divorce proceeding, discovery rules allow you to request information from your spouse that can help you identify concealed property or money.
Why Hire a North Carolina Divorce Lawyer for Hidden Asset Cases?
A lawyer is a critical ally if your spouse may have hidden assets or income. Our skilled divorce lawyers can pursue legal remedies to hold your spouse accountable and protect your financial interests, such as:
- Hiring forensic accountants and other financial experts to investigate suspected hidden income or property
- Filing motions for the court to compel your spouse to provide a full financial disclosure
- Requesting financial records and conducting questioning through the formal discovery process
- Pursuing contempt proceedings and penalties against your spouse under N.C.G.S. § 50-21
- Seeking a court order for your spouse to pay for the legal and professional fees you spent to uncover hidden assets
- Advocating for you to receive a larger share of the marital estate to account for the value of assets your spouse concealed
- Arguing for your spousal support rights based on your spouse’s marital misconduct under N.C.G.S. § 50-16.2A
- Using your spouse’s deceit to show the court they’re untrustworthy when it comes to other divorce matters
- Challenging property settlements or previous rulings based on incomplete financial information
At Caulder & Valentine Law Firm, PLLC, our team has over 25 years of combined legal experience and a track record of helping clients navigate contentious separations and complex financial disputes. In one case, we helped a hard-working engineer protect over $1 million in assets in his divorce from a controlling and manipulative ex-spouse.*
Here’s what another client had to say about working with us on their divorce case:
“Everyone at Caulder & Valentine Law Firm, PLLC were hospitable and gave wonderful service. Mr. Kidd was exceptional throughout my entire divorce process. His expertise and willingness to accommodate were remarkable. I wholeheartedly would recommend him to anyone in search of an outstanding attorney. I highly recommend this law firm.” – LeeAnna Dixon
The sooner you reach out, the sooner we can start protecting your financial future. Contact us today to discuss your legal options.
FAQs
Here are the answers to some of our most frequently asked questions about hidden assets in divorce.
Can You Reopen a Divorce Case If Assets Were Hidden?
You might have the option to reopen a divorce case if you can show that your ex intentionally concealed assets and impacted the proceedings. An experienced divorce attorney can help you evaluate your rights.
Can My Spouse Transfer Money to Family Members Before Divorce?
Your spouse may technically be able to transfer money or property to other family members. But if they use marital funds, the court may see it as an attempt to conceal or waste assets before the divorce. Your lawyer can help you investigate and determine whether the transfer was allowed.
Contact the Divorce Lawyers at Caulder & Valentine Law Firm, PLLC in North Carolina
Do you suspect that your ex is hiding assets before or during your divorce proceedings? Then contact Caulder & Valentine Law Firm, PLLC today for a confidential consultation about North Carolina laws on hidden assets in divorce. We can answer your questions, explain your options, and help you protect what’s yours.
*Each case is unique, and past results do not guarantee future outcomes.
