Finding Hidden Assets During a New York Divorce

Buffalo divorce lawyer fights to find all marital property

In a New York divorce, all marital property is subject to equitable distribution. Each spouse is required to provide the other full disclosure of all assets they own or possess, so that the distribution can be fair. But some spouses try to keep more of what should be divided by attempting to hide assets from their spouses and from the court. At the Law Offices of Randy S. Margulis in Buffalo, our lawyers aggressively fight for spouses throughout Western New York who believe that assets are being hidden. 

Signs a spouse may be hiding assets during divorce

There are numerous red flags that a spouse is not being forthcoming with disclosure of assets. The following are examples:

• The spouse’s behavior changes, such as being more secretive or defensive in discussing finances.
• You stop receiving bank statements for shared accounts.
• Your spouse has changed passwords for online accounts.
• You start seeing statements from financial accounts that you did not know existed. 
• Your spouse shows an interest in new types of investments or offshore accounts.
• You see unexplained cash withdrawals from accounts or notice unusual transactions. 
• Your spouse opens a custodial account under your child’s social security number. 

If you notice these signs or other things that seem suspicious to you, immediately notify your Buffalo divorce lawyer, who will investigate and take steps to prevent your spouse from secreting assets. 

Where hidden assets are often found 

There are some typical places where divorcing spouses may try and hide assets including:

• Custodial accounts for children
• Secreted away cash
• Offshore accounts, especially in a high-asset divorce 
• High value purchases, such as jewelry
• Trusts in the spouse’s name

A person hiding assets may also transfer ownership to another party until divorce is complete. 

Steps to take if you suspect your spouse is hiding assets 

It is crucial to copy financial documents before they potentially disappear. These include the following:

• Bank statements
• Investment account statements
• Tax returns 
• Pay stubs of your spouse
• Credit card statements
• Loan or credit card applications
• Property deeds and records
• Receipts for high-dollar purchases
• Life insurance policies
• Trust documents

Provide copies of these documents to your attorney. We will use them to begin the process of investigating whether and where assets are being hidden. 

How your attorney can help find hidden assets

As your counsel, we can use discovery tools to obtain financial documents, including tax returns and credit reports. We can hire forensic accountants to examine records for irregularities. If necessary, we will issue subpoenas to get access to employment records and financial and investment accounts of your spouse. We will conduct interviews with bank employees, investment advisors, business partners other individuals who might have knowledge of your spouse’s financial activities. 

Impact of hidden assets on division of marital property and support payments 

If hidden assets are not found, you could lose out in the amount of property distribution and alimony payments you deserve. Child support payments might also be diminished. If hidden assets are discovered, the court may award you a larger share of marital property, as well as order your spouse to pay your legal fees and costs related to investigating and seizing assets. 

Contact a Buffalo divorce lawyer to protect your property rights

Our New York attorneys at the Law Offices of Randy S. Margulis in Buffalo investigate and hold accountable individuals who try to hide assets in divorce. Call 716-886-9600 or contact us online to schedule a consultation about your matter