Your Remedies in a Divorce if You Think Your Spouse is Hiding Assets

In New York divorce cases, the principle of equitable distribution applies, which means marital property is divided fairly though not necessarily equally. Marital property generally includes all assets and debts acquired during the marriage, regardless of whose name they are held in. Each spouse has a legal duty to fully disclose their full financial information. If one spouse suspects the other of hiding assets, they can take legal action.

The discovery phase of a divorce allows each party to request information and documents relevant to the division of property. These are the discovery tools that an attorney can employ:

1. Interrogatories — The other spouse may be sent written questions to answer under oath. These can help uncover inconsistencies or identify hidden accounts and transactions.
2. Depositions — Oral questioning of the other spouse under oath allows attorneys to probe for details and assess the credibility of that spouse’s claims about their financial situation.
3. Requests for production of documents — These are formal demands for financial records, such as bank statements, tax returns, credit card statements and investment portfolios. These documents can show transfers and reveal discrepancies between reported income and lifestyle. 
4. Subpoenas — These are court-backed orders to deliver financial documents or testimony. They are sent to third parties, such as banks, employers or accountants, that might hold evidence of hidden assets.
5. Electronic discovery — Examining digital records, such as emails, online transactions or social media posts, can provide clues about undisclosed assets or income.

In addition to formal discovery tools, a spouse can employ a forensic accountant to analyze complex financial records, trace transactions and identify irregularities such as unreported income or concealed property. Expert witnesses, such as real estate appraisers or valuation experts, may help assess whether assets have been undervalued.

If a spouse is found to have hidden assets, New York courts can impose severe penalties. The offending spouse may lose a larger share of the marital property or be required to pay restitution. If assets were transferred to third parties (e.g., to friends or family), the court might invalidate those transfers and restore the assets to the marital estate. The court can also order the payment of the other spouse’s legal fees and forensic accounting costs incurred to uncover the hidden assets. In extreme cases, hiding assets could lead to the spouse being held in contempt of court or even charged with perjury.

By leveraging discovery tools and obtaining court intervention where needed, an experienced equitable distribution attorney can protect your right to a fair share of marital property. 

The attorneys at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP in St. James, New York work with clients across Long Island in solving the complications of dividing property in a divorce. Call us at 631-360-0400 or contact us online to arrange a free initial consultation.