Finding Hidden Income & Assets
During a divorce, it may be tempting to hide or intentionally fail to disclose all of your assets in an effort to keep them out of the divorce settlement. This is not only unfair and unethical but also illegal. Each spouse has a right to a fair division of assets in Kentucky, which is why it is critical to understand how to find hidden income and assets when ending your marriage.
If you need assistance proving that your soon-to-be-ex-spouse is hiding money or trying to unfairly influence property division, contact a skilled family law attorney to ensure that you do not get financially duped by your spouse.
At The Berger Firm, we provide exceptional legal service to individuals who are going through a divorce in Covington, Kentucky, and throughout Greater Cincinnati. We also serve clients in Florence, Newport, and other parts of Northern Kentucky, including the counties of Kenton, Campbell, Boone, Hamilton, Grant, and Gallatin. Set up a consultation today.
Division of Assets in Kentucky
Under Kentucky law, division of assets involves making a distinction between separate and marital assets. Separate property is owned individually by one spouse and is not subject to division, while marital assets must be split between the spouses during a divorce.
Kentucky law requires courts to divide marital assets in an equitable manner, which does not always mean “equal.” Instead, Kentucky courts consider a number of factors to rule on the property division. Those factors include the length of the marriage, each spouse’s contributions, the value of assets, and many others.
Common Ways to Hide Assets or Income
There are many techniques spouses use to disguise or hide assets from their spouses before or during a divorce. Common ways to hide assets or income in a divorce include:
Hiding money in cash
Buying new possessions
Paying off family loans
Hiding money in a business
Undervaluing assets
Creating trusts and making gifts to family or friends
Setting up undisclosed accounts and investments
If you are concerned that your spouse is trying to hide income or assets, it is important to work with a skilled and experienced divorce attorney to uncover the truth and get to the bottom of the issue.
Uncovering the Truth When Finding Hidden Income & Assets
There are several steps you can take when searching for hidden or undisclosed assets. These include:
Hiring a knowledgeable attorney. Your attorney will have the resources to help you seek the truth. Since each case is unique, working with a detail-oriented attorney is necessary to identify the right approach to finding hidden income and assets in your specific situation.
Making copies of all financial records. If you are contemplating a divorce, it is essential to make copies of all financial records, including those belonging to your spouse, while you still have access to them. Financial records that may help you find hidden income and assets include bank records, loan documents, business records, retirement account statements, and others.
Reviewing the tax returns. Often, tax returns are the best place to start searching for hidden income and assets because your spouse may be hesitant to hide anything from the Internal Revenue Service (IRS) due to the serious consequences.
Take inventory of all your assets. Locating hidden assets is easier when you have a list of all the assets you and your spouse have acquired during the marriage and owned before the marriage.
Using the discovery process. In many cases, the discovery process is the only effective way to prove that your spouse is trying to hide income or assets. During this formal process, the parties exchange and gather information about their assets.
If you believe that your spouse is trying to hide income or assets, it is vital to address your concerns sooner rather than later. Seek the assistance of a skilled attorney to achieve clarity around your financial situation.
Let The Berger Firm Help You
Our family law attorneys at The Berger Firm have the necessary experience to provide a vigilant eye when it comes to your spouse hiding income or assets. We are dedicated to helping our clients in Covington, Kentucky, and other parts of Northern Kentucky (including the counties of Kenton, Campbell, Boone, Hamilton, Grant, and Gallatin) strive for fair divorce settlements. Get compassionate representation and a case review from our attorneys by scheduling your consultation.