How To Handle Hidden Assets During A Divorce?

Unfortunately, hiding assets during a divorce happens quite frequently. Your spouse or common law partner can either transfer their assets to their parents or siblings, so they can keep most of their wealth. Information about these assets is important for calculating child support and spousal support as well as a fair distribution of shared property. 

Fear of losing control over money or assets, resentment towards their partner, or a desire to secure a better financial position post-divorce drives this behaviour. They may also feel like they deserve a bigger share of the assets, while some feel that the law won’t provide a fair outcome. 

Here are some ways your spouse might be hiding assets: 

• Undisclosed Bank Accounts
• Withdrawing Cash Over Time 
• Physical Assets like real estate, gold, and diamond jewellery 
• Delaying Bonuses or Income
• Fake Debt
• Undervalued Business Interests

Here are some ways you can begin the discovery process as you finalise an experienced family lawyer to work with:

1. Check Tax Returns

Review past tax returns for inconsistencies , unreported income, or unusual deductions, all of which are good indicators of undisclosed assets.

2. Review Bank and Credit Card Statements

Look through bank statements for unusual transactions, such as transfers to unknown accounts or large cash withdrawals.

3. Talk to Third Parties

Speak with financial advisors, business partners, or accountants who have previously worked with your estranged spouse and are willing to support you.

4. Check Their Lifestyle

Compare your spouse’s reported income with their lifestyle. If they’re spending more than they’re earning, that’s a clear sign as well.

5. Scrutinise Business Records

If your spouse owns a business, review the company’s financial records for signs of underreported income, fake employees, or manipulated expenses.

It goes without saying that you’ll first need to hire a family lawyer in Brampton to handle the process. Discuss your doubts with them and they’ll guide you on how to gather and preserve evidence of hidden assets. 

Next, your attorney may recommend filing a motion for discovery, which legally compels your spouse to disclose all financial information. If there are still concerns about undisclosed assets, the court can appoint a forensic accountant. 

If the accountant discovers discrepancies, they will recommend the court to subpoena the bank for detailed records. If your spouse continues to withhold information, the court may impose penalties or even award a larger share of the marital assets to you. 

While this particular legal route is tiresome and can go on for several months or years, it makes sure you receive assets that you deserve. Ontario law does not look kindly on those who attempt to hide assets. 

As your family lawyer, Sterling Law will always fit for your rights whether in a boardroom or a courtroom. We’ve handled complex divorce cases like yours in Brampton and helped them get the assets they deserve. 

We’re here for you! Please book a free first consultation (15 minutes only) so we can advise on your particular issue.

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