Spotting the Signs of Asset Hiding in an Arizona Divorce

Certain behaviors during a divorce may indicate that a spouse is trying to gain an advantage by hiding assets. Some signs of asset hiding include unexplained financial transactions, increased secrecy about finances, claims of reduced income, and unusually large gifts to friends or family members.

Recognizing these warning signs can help you protect your financial interests during the Arizona divorce process. If asset hiding becomes a concern, a divorce lawyer at Mushkatel, Gobbato, & Kile, P.L.L.C., can review financial records, identify irregularities, and help pursue a fair division of marital property.

What Are Hidden Assets in an Arizona Divorce?

“Hidden assets” in an Arizona divorce refers to spouses’ efforts to conceal marital money or property from each other and the court to avoid splitting community property in the divorce or to minimize child and spousal support obligations. Hidden assets may include the following:

• Money
• Stocks
• Real estate
• Physical assets such as jewelry or other valuables
• Business interests

A spouse may hide assets to gain a litigation advantage in a divorce proceeding or leverage during settlement negotiations.

Is Hiding Assets Illegal?

Arizona’s divorce laws and court rules require spouses in a divorce to provide complete financial disclosures. Spouses may not “hide” income or assets from each other or the court.

A spouse caught hiding assets during a divorce can face financial and legal consequences. A court may penalize a spouse for hiding assets by holding them in contempt, imposing fines, or requiring the spouse to pay their other spouse for their professional expenses incurred in uncovering the assets. Efforts to hide assets may also lead to criminal perjury or fraud charges in certain circumstances, potentially exposing a spouse to prosecution.

What Are Examples of Hiding Assets?

Individuals may use various strategies to hide assets from their spouses and the court during a divorce proceeding. Popular methods of concealing money or assets include the following:

• Placing income or funds in separate bank accounts
• Transferring assets to offshore bank accounts or trusts
• Retitling real estate in the name of a trust, corporation, or LLC
• Transferring an asset to someone with the understanding that they will transfer it back after the divorce
• “Selling” assets at below market value or for nominal value to family members, friends, or business partners
• Saddling one’s business with “debt” to reduce its apparent value or net income
• Increasing personal expenses to minimize net monthly personal income
• Placing wealth into less traceable cryptocurrencies

What Are Signs Your Spouse Might Be Hiding Assets in Your Divorce?

You can protect your financial interests by knowing what red flags might indicate that your spouse has tried to conceal assets during your divorce proceedings.

Signs you should watch out for that may signal your spouse’s efforts to hide assets or money in your divorce include the following:

• Your spouse tries to take complete control over your family’s finances.
• Your spouse stops discussing finances or becomes defensive when you want to discuss financial issues.
• You start receiving statements for unexplained bank accounts in the mail.
• You notice unexplained withdrawals in joint bank accounts or unexplained charges to joint credit cards.
• Your spouse begins making expensive purchases.
• Your spouse claims to have lost their job or to have suffered a substantial drop in business revenue.
• Account statements stop arriving by mail or email, or your spouse changes passwords for joint accounts.
• Your spouse suddenly begins making financial gifts to others, including members of their family or their friends.
• Your spouse has a private mailbox or P.O. box.

What Should You Do If You Find Your Spouse Is Hiding Assets?

If you suspect or discover that your spouse has hidden assets, you can take steps to protect your financial interests during asset division in divorce. Things you should do if you find your spouse has hidden money or assets include the following:

• Gather financial documents, such as bank statements, brokerage statements, tax returns, loan statements, property deeds, and credit card statements. Download copies of documents from online accounts in case your spouse cuts off your access.
• Consult financial professionals like forensic accountants, who can review your financial documents and investigate your spouse’s financial affairs to identify irregularities in their finances and track down hidden assets.
• Review your family’s finances to identify unusual discrepancies, such as unexplained bank withdrawals, purchases, or expenses.
• Work with your lawyer to pursue discovery requests that can obtain critical information and records from your spouse or to seek injunctive relief to prevent your spouse from moving assets or withdrawing money.

How Can an Experienced Divorce Attorney Help You?

If you learn that your spouse has hidden assets, you may feel angry and overwhelmed about what to do next. A knowledgeable divorce lawyer can help you respond to signs of your spouse’s efforts to conceal assets in your divorce by:

• Educating you on the common warning signs of efforts to hide assets
• Reviewing financial records to identify discrepancies
• Working with forensic accountants and other financial experts to analyze records to locate hidden assets
• Seeking additional information from your spouse through discovery proceedings
• Pursuing legal relief if your spouse has hidden assets, including advocating for a more favorable result for you in the financial issues of your divorce case, requesting the court hold your spouse in contempt, and pursuing reimbursement from your spouse for the expenses you incurred in uncovering their hidden assets.

Contact an Arizona Divorce Lawyer Today

If you or your spouse has filed for divorce, assets hidden by your spouse may deprive you of your share of the marital estate. At Mushkatel, Gobbato, & Kile, P.L.L.C., our attorneys have over five decades of combined legal experience. Over the years, we have worked diligently to earn the trust and respect of the people we represent.

Our full-service law firm can provide you with the personalized attention of a boutique law practice, combined with the experience, skills, and resources of a larger law firm. Contact us today for a confidential consultation with an experienced divorce attorney and learn more about your legal rights and options if you believe your spouse is trying to conceal assets.