Hidden Assets and Property Division in New Jersey Divorce
Divorce can be a difficult and emotionally charged process, and the division of assets is one of the most complex and contentious aspects. The process becomes even more complicated when one spouse tries to conceal assets. Hiding assets during a divorce can have serious legal consequences, and understanding how New Jersey law addresses this issue is essential for anyone facing a high-stakes divorce involving significant property or financial interests. Here’s what you need to know about uncovering hidden assets and ensuring a fair property division. For help with the equitable distribution of marital property in your New Jersey divorce in Union, Essex, or Middlesex County, contact the Law Offices of John B. D’Alessandro to speak with a skilled and knowledgeable Union property division lawyer.
New Jersey’s Equitable Distribution Framework
New Jersey is an “equitable distribution” state, meaning that marital property is divided fairly (“equitably”) but not necessarily equally. The courts consider several factors when deciding how to divide marital assets, such as the length of the marriage, each spouse’s income and earning capacity, the standard of living during the marriage, and the contributions made by each spouse, both financially and non-financially. While the division aims to be fair, it does not always result in a 50-50 split.
For an equitable division to occur, both parties must fully disclose all assets and debts. Unfortunately, some individuals may attempt to hide or undervalue assets to gain an unfair advantage.
Common Methods of Hiding Assets
There are several ways a spouse might try to hide assets during a divorce, and understanding these tactics can be critical. Some common methods include:
- Undisclosed Bank Accounts: A spouse may open separate bank accounts and deposit money there to keep it off the marital asset balance sheet.
- Underreporting Income: Especially for those who are self-employed or own a business, it can be relatively easy to misreport income or create false expenses.
- Transferring Assets: Moving assets to friends or family members or making sham “loans” is a tactic used to shield assets temporarily.
- Hiding Cash or Valuable Items: Physical cash, jewelry, or other valuable items may be hidden to prevent them from being included in the property division.
- Overpaying Taxes: This strategy involves overpaying the IRS to get a large refund after the divorce is finalized.
Legal Implications of Concealing Assets
Hiding assets during a divorce in New Jersey is a serious offense with significant legal ramifications. Courts have the authority to impose harsh penalties on spouses who are found to have acted fraudulently. These penalties can include:
- Monetary Sanctions: The court may order the offending spouse to pay the other party’s legal fees and additional fines.
- Adjusting the Property Settlement: Judges can award a larger share of the marital estate to the innocent spouse to compensate for the deception.
- Criminal Charges: In extreme cases, hiding assets may result in criminal charges for perjury, fraud, or contempt of court.
How to Uncover Hidden Assets
Uncovering hidden assets requires a strategic and often methodical approach. Working with an experienced family law attorney who can leverage forensic accountants and financial experts is crucial. These professionals can track down inconsistencies in financial statements and use various tools to uncover hidden accounts, underreported income, or transferred assets.
Key steps in uncovering hidden assets may include:
- Requesting Comprehensive Financial Disclosures: Your attorney can demand full disclosure of all financial documents, including tax returns, bank statements, credit card statements, and business records.
- Using Discovery Tools: The legal process of discovery allows attorneys to obtain information through interrogatories (written questions), depositions, and subpoenas.
- Employing Forensic Accountants: These experts specialize in examining financial records to identify signs of concealed wealth or unusual transactions.
- Investigating Real Property Holdings: A property search can reveal real estate holdings in other states or countries that were not disclosed.
The Role of Your Divorce Attorney in Uncovering Hidden Assets
If you suspect your spouse is hiding assets, your divorce attorney will be your advocate in ensuring a fair property division. A skilled attorney will know the signs of financial misconduct and will use all available legal tools to uncover any deception. They will also guide you through the process of protecting your financial interests, ensuring you are not taken advantage of during your divorce.
Steps You Can Take If You Suspect Hidden Assets
While your attorney will handle much of the heavy lifting, there are things you can do to aid the investigation:
- Review Financial Documents: Familiarize yourself with your spouse’s financial history, including previous tax returns and credit reports.
- Document Suspicious Activity: Keep detailed records of anything unusual, such as sudden drops in income, missing bank statements, or new expenses that can’t be explained.
- Stay Vigilant: If your spouse is unusually secretive about finances or becomes defensive when asked about money, take note and inform your attorney.
Contact the Law Offices of John B. D’Alessandro for Help With Property Division in Your New Jersey Divorce
The division of property is a crucial component of any New Jersey divorce, and full transparency from both parties is essential to achieve an equitable settlement. If one spouse attempts to hide assets, it can lead to severe consequences. The Law Offices of John B. D’Alessandro understands the complexities of asset division and the importance of uncovering hidden assets. With our experience in handling high-asset divorces in Union, Essex, and Middlesex counties, we are equipped to protect your rights and ensure a fair outcome. If you are facing a divorce and suspect hidden assets may be involved, contact our office at 908-964-0102 to discuss your case and learn how we can assist you.