When a spouse hides assets, it becomes difficult or even impossible to create a property division plan that adheres to California’s property division laws while remaining fair for both spouses. Watching out for signs your spouse may be hiding assets during a divorce in Redondo Beach, CA, can help you take early action to defend yourself against your spouse’s unjust and unlawful conduct.
An Overview of Hidden Assets in California Divorces
A Redondo Beach hidden assets case occurs when a spouse fails to properly disclose all their assets during a divorce, instead choosing to conceal certain assets. This often occurs because in California, marital assets are divided equally between spouses. By hiding assets and splitting the remainder of the marital property, they walk away with a larger share.
Hidden assets may be more common in marriages that lack financial transparency and trust. Of young adults, 27% have lied about their financial situation to a partner, while 43% of U.S. adults believe keeping financial secrets is at least as bad as physical infidelity.
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Signs to Watch Out for Before or During a Divorce
While a thorough investigation is needed to prove that a spouse is hiding assets, many people notice warning signs. Some of the most common include:
- Sudden secrecy, such as hiding bank or credit card statements or changing passwords to online financial information
- Suspicious transfers or cash withdrawals from shared accounts
- Paying unusual debts, such as to friends or family members
- Overpaying creditors or the IRS
- Moving funds into a difficult-to-track cryptocurrency
- Income changes without a change in lifestyle or spending
- Sudden, expensive purchases that they would not normally make
Ways Spouses May Conceal Assets in a Redondo Beach Hidden Assets Case
Spouses can use many tactics to keep assets out of the property division process. Often, this includes:
- Keeping money in secret accounts, often including offshore bank accounts
- Transferring property to another individual with an agreement that they will return it after the divorce
- Delaying income, bonuses, or raises until after the divorce
- Underreporting business income or overpaying business expenses
- Overpaying taxes in order to receive a large refund after the divorce
Often, the method used to conceal assets can be determined based on the type of unusual activity they are showing. For example, if they are making unusual payments to family or friends, they may plan on having the person return the assets after the divorce. Because of this connection, be sure to take note of all unusual or suspicious financial activity.
What You Should Do If You Suspect That Your Spouse Is Hiding Assets
If you observe signs of hiding assets, you should act quickly to preserve evidence and work with a Redondo Beach hidden assets attorney. Moving swiftly is important, as you may lose access to key evidence or your spouse may hide additional assets. Fast action can also help you avoid further delays, on top of the existing six-month waiting period for a divorce.
First, gather a copy of any relevant financial documents. This includes tax returns, bank statements, credit card statements, deeds to properties and vehicles, and statements of retirement and investment accounts. Evidence that shows a record of your spouse’s strange activity should also be preserved, such as a bank statement that shows a large ATM withdrawal.
Next, you should hire a hidden assets lawyer for help investigating the potential offense and taking legal action. Hidden asset cases involve highly complex financial documents. A Redondo beach family lawyer can help you obtain access to key evidence and can analyze it for evidence to use in your case.
Why You Should Hire a Hidden Assets Lawyer from Rombro & Manley LLP
Rombro & Manley LLP has 40 years of experience pursuing fair property division practices. When hidden assets are suspected, our Board-Certified Specialists in Family Law can help you build an evidence-based case that advocates for financial transparency and equal property division.
A Redondo Beach hidden asset case can be settled outside of court or through litigation. At Rombro & Manley LLP, we can help you negotiate an optimal outcome, or we can represent you in court. These cases are typically handled in the Torrance Courthouse on 825 Maple Ave. in Torrance.
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FAQs About Signs Your Spouse May Be Hiding Assets During a Divorce in Redondo Beach, California
What Happens When a Spouse Hides Money During a Divorce?
When a spouse hides money during divorce proceedings, they can face a variety of different penalties. The exact consequences vary depending on the court’s discretion, the amount of assets hidden, and whether they were maliciously hidden. Potential penalties include having the hidden assets awarded to the innocent spouse, paying the legal and attorney fees of the innocent spouse, and even criminal charges for perjury or fraud.
Can a Spouse Hide Assets If They Are Their Separate Property?
No, California’s hidden asset laws require both spouses to fully disclose their financial information, including all assets and debts. Even if a spouse is the sole owner of a piece of property and it can remain separate during a divorce, they still must be transparent. By hiding property that a spouse believes to be separate, the court is unable to verify that the property is actually separate property.
How Do You Find Out If Your Spouse Is Hiding Assets?
You can find out if your spouse is hiding assets by working with a Redondo Beach hidden assets attorney. A lawyer can help gather and analyze financial documents that can prove or disprove your suspicions. Often, spouses choose to contact a lawyer after noticing warning signs such as unusual secrecy regarding financial reports or suspicious transfers of property before a divorce.
How Can a Hidden Assets Attorney Prove That a Spouse Is Hiding Assets?
A hidden assets attorney can investigate you and your spouse’s finances to find evidence of undisclosed assets. Often, this involves identifying discrepancies between income and spending, tracking down unusual property transfers, or investigating public records to find out if there are other properties in your spouse’s name. A lawyer may analyze records you have access to, speak with your spouse, or use a subpoena to uncover specific documents.
Contact Rombro & Manley LLP for Guidance With a Hidden Assets Divorce Case
With complex hidden asset laws and difficult financial investigations, skilled legal guidance is essential. Contact Rombro & Manley LLP to learn how a Redondo Beach hidden assets lawyer can make this process easier.
