Unfortunately, many high-asset divorce cases lack financial transparency, and some even involve hidden assets. When substantial wealth, business interests, or investment accounts are involved, a spouse may attempt to conceal assets to gain a financial advantage during the divorce process. Learning about how hidden assets are found in high-asset divorces in Racho Palos Verdes can be critical for a fair outcome. Kramer & Zitser, LLP, can reveal this deception and pursue a fair property division.
Why High-Asset Divorces May Be More Likely to Involve Hidden Assets
High-asset divorces tend to carry a greater risk of hidden or undisclosed assets simply because the financial stakes during a divorce are significantly higher. In Rancho Palos Verdes, where the median household income is $179,623, marital estates can easily be worth millions. When more wealth is involved, there are more opportunities for issues with disclosure or concealment.
Financial complexity is a major factor in why hidden assets may be more common in a high-asset divorce case. Often, high-asset cases include:
- Multiple income streams
- High-value real estate properties
- Business ownership interests
- Extensive investments
With so many financial accounts and actions involved, it may be easier for a spouse to conceal certain assets.
Relationships that lack financial trust or transparency may also lead to hidden assets cases. It is found that 43% of adults in the United States view keeping financial secrets as being at least as bad as physical infidelity. Of adults aged 18-35, 19% have been in a relationship that ended due to financial troubles, which can, of course, happen at any stage of an individual’s life.
How Hidden Assets Can Be Found
Several legal or investigative methods can effectively uncover hidden assets. A Rancho Palos Verdes hidden assets attorney can explain the hidden assets laws that govern which methods can be used and how they can be lawfully conducted. Some of the most common methods include:
- Formal legal discovery. The discovery process can include:
- Interrogatories that require your spouse to provide answers under oath to certain financial questions
- Depositions that collect your spouse’s statement under oath
- Requests for personal or business financial records
- Subpoenas to banks, employers, and other third parties for financial information
- Review of financial documents. Often, a lawyer can identify discrepancies between financial records, which can point toward undisclosed assets. They may look at:
- Tax returns
- Bank and credit card statements
- Loan applications
- Investment and retirement account records
- Business records
- Forensic accounting. Forensic accounting methods involve:
- Looking deeper into financial documents and transactions
- Comparing income to spending patterns
- Investigating discrepancies in financial documents
- Independently valuing assets
- Investigation of digital history. Often, a lawyer uses digital records in addition to traditional financial records. Cryptocurrency wallets, online investment platforms, or digital payment services, such as Venmo or PayPal, are often used to hide assets.
What Are the Consequences of a Spouse Hiding Marital Assets?
Hidden assets laws in California prohibit a spouse from hiding assets or otherwise mishandling them to avoid detection during divorce proceedings. Courts require full transparency from both spouses. A judge in the Los Angeles Superior Court may determine that the offending spouse should be penalized because of their actions. Such penalties may include:
- Reallocating all or a large percentage of the concealed assets to the wronged spouse
- Unequal property division that favors the honest spouse
- Court-ordered financial penalties
- Paying the attorney’s fees of the wronged spouse
- Losing credibility in property division and other divorce issues
Why You Should Hire a Hidden Assets Lawyer From Kramer & Zitser, LLP
Hidden assets cases require a detail-oriented, strategic approach. At Kramer & Zitser, LLP, we have experience with financial investigations and complex property division cases. We can work tirelessly to uncover financial dishonesty, seeking the fair outcome you need for your divorce.
Kramer & Zitser, LLP, is a team of two senior attorneys, Brian Kramer and Diana Zitser. Together, they have over 50 years of experience in an array of divorce cases. They have built a reputation for an aggressive pursuit of justice while still providing compassionate support during difficult times.
FAQs
What Are the Signs That There Are Hidden Assets?
When hiding assets, your spouse may:
- Show signs of secrecy about online financial accounts or reports.
- Make large withdrawals.
- Enact changes in reported income without a clear reason.
- Engage in high levels of spending.
- Open new financial accounts.
If your spouse is acting secretive or unusual about your finances before or during a divorce, gather copies of any financial records. Then, hire a hidden assets lawyer to uncover any dishonest actions.
Is There a Way to Track Hidden Assets?
Yes, tracking hidden assets is possible. A Rancho Palos Verdes hidden assets attorney can identify and track hidden assets through methods such as:
- Forensic accounting
- Digital evidence of financial transactions
- Records of communication
- Searching public records
A lawyer can also subpoena information, which can obtain records from financial institutions or other parties that wouldn’t otherwise be available.
What Types of Assets Are Commonly Hidden?
A hidden asset case can involve many types of hidden assets, which is why a thorough investigation is needed. However, some assets we commonly see spouses conceal include:
- Physical cash
- Physical valuables
- Assets held in foreign banks
- Business assets
- Unreported or intentionally delayed income
- Digital assets, such as cryptocurrency or NFTs
- Money transferred to family or friends
What Is the Difference Between a Contested and an Uncontested Divorce?
In an uncontested divorce, both spouses can agree on all major issues, settling the divorce out of court. A contested divorce, however, requires a judge to make the final decision because the spouses can’t come to an agreement. A hidden asset case can be uncontested, but it often requires a court process due to the severity and secrecy involved, which can make it impossible to communicate and create a fair property division plan.
Learn How a Rancho Palos Verdes Hidden Assets Lawyer Can Uncover Hidden Assets
If you suspect your spouse of dishonest actions or financial disclosure, don’t wait until it’s too late. Contact Kramer & Zitser, LLP, to begin gathering evidence, investigating their actions, and working toward a fair and honest property division plan.
