What Can I Do If a Spouse is Hiding Assets During Divorce?

Divorce is already hard. Add financial deception to the picture, and it becomes something else entirely. If you suspect your spouse is hiding money or property during your divorce, you are not alone, and you are not powerless. When one spouse conceals assets from the other, this is a clear violation of Michigan’s laws and creates an unfair situation for you. It’s important to understand:

• The signs of concealment
• Important discovery tools
• The benefits of forensic accounting
• Possible consequences and penalties

Here at Robbins & Licavoli, we want you to understand what you can do if you believe that your spouse is hiding assets. For further guidance on your case, contact our office.

What Are the Warning Signs That a Spouse Is Hiding Assets?

A spouse rarely hides assets overnight. The process is often gradual, and you may notice small changes in their financial behavior over time. Pay attention to the following red flags if you suspect your spouse is concealing assets:

• Sudden income drops: A self-employed spouse who reports dramatically lower earnings right before or during divorce proceedings
• Overpayments to the IRS: Overpaying taxes to generate a refund that can be claimed after the divorce is finalized
• Unusual business expenses: Paying “employees” or “vendors” who do not actually exist
• Deferred bonuses or salary increases: An employer who agrees to delay compensation until after the divorce is settled
• Large cash withdrawals: Money taken out of joint accounts without explanation
• Transferring assets to friends or family: Property or funds are moved to a trusted third party to be returned later
• New debt claims: Suddenly “remembering” loans owed to friends or relatives

If any of these patterns seem familiar, you should look closer at your financial situation. Attempting to hide assets is a serious matter that can impact the outcome of your divorce settlement. A family law attorney can help you investigate these concerns and protect your financial rights.

What Tools Can Your Attorney Use to Uncover Hidden Assets?

The discovery process gives your attorney significant power to investigate your spouse’s finances. This is one of the best ways to hold a dishonest spouse accountable. Common discovery tools include:

• Interrogatories: Written questions your spouse must answer under oath
• Subpoenas: Court orders requiring banks, employers, or other third parties to produce financial records
• Depositions: Sworn testimony taken outside of court, where your attorney can question your spouse directly
• Requests for production: Formal demands for tax returns, bank statements, pay stubs, and other important financial documents

You should always seek the help of an attorney if you need to uncover hidden assets.

When Does It Make Sense to Hire a Forensic Accountant?

When the finances are complicated, or when a spouse is particularly skilled at concealing money, a forensic accountant can be a valuable ally. These financial investigators are trained to find what standard discovery might miss. A forensic accountant can:

• Analyze tax returns: They can find discrepancies or unreported income.
• Trace money: They can follow funds through shell companies or business accounts.
• Identify undervalued assets: They can spot assets that were undervalued on financial disclosures.
• Reconstruct financial records: They can rebuild financial histories when a spouse claims documents are missing.
• Provide expert testimony: The accountant can testify in court and reveal their findings.

This matters most in cases involving business ownership, investment portfolios, real estate holdings, or self-employment. The more complex the financial picture, the more a forensic accountant can uncover.

What Happens to a Spouse Who Gets Caught Hiding Assets?

Michigan courts do not look kindly on financial deception during divorce. If a judge discovers that your spouse deliberately hid or misrepresented assets, there are severe consequences. Possible penalties include:

• Unequal property division: A judge may provide you with a larger share of property as a direct result of your spouse’s misconduct
• Sanctions and fines: Courts can impose financial penalties against a spouse who violates discovery rules or lies in proceedings
• Contempt of court: A spouse who defies court orders related to financial disclosure can face fines or even jail time
• Attorney’s fees: The court may order your spouse to pay your legal costs if their deception created unnecessary expenses
• Perjury charges: If the concealment involved sworn statements or testimony, criminal charges are a possibility

When deception is proven, judges possess broad discretion to correct an unfair outcome. A spouse who attempts to hide assets risks serious legal consequences that can affect the final property settlement. It is important to address these concerns through the legal process to protect your rights.

Protect Your Assets with Robbins & Licavoli

At Robbins & Licavoli, our Oakland County divorce attorneys have experience handling complex property division cases, including situations where one spouse has gone to great lengths to hide what they own. We take the time to understand your situation, give you an honest picture of your options, and fight for the outcome you deserve at every stage of the process. Contact Robbins & Licavoli today to schedule a consultation and see how we can help.