Hiding marital assets during the process of a divorce is illegal. The law seems simple – that one party cannot hide assets to the detriment of another.  Nevertheless, some soon-to-be-ex spouses hide marital assets during the process of a divorce.

In the divorce case of Donahue v. Donahue (1984), Mr. Donahue attempted to conceal bonds with substantial monetary value by leaving them with his girlfriend.  Mr. Donahue’s parents, who had given him the bonds, also tried to hide them from Mrs. Donahue and the trial court. In the ruling, the court included the bonds in the marital estate, and Mrs. Donahue received her fair portion of the bonds. 

Courts are usually harsh toward clients who are uncooperative or behaving deviously.  However, the burden to discover hidden assets is on the spouse who is claiming the other party is hiding assets.

Finding hidden assets, unreported or under-reported income, or concealed or undisclosed property is challenging. Looking for hidden assets is frustrating, difficult, complex, and confusing.  Finding all of the assets becomes a matter of asking the right questions.  Hidden assets are frequently placed in the hands of third parties or behind false documents.

Four general tests to determine if an asset is part of the marital estate: 

1. Was it acquired during the marriage?  The court determines the beginning and ending dates for the period of marriage. The ending date for shared marital assets is often the date of separation.
    
2. Is the asset separate property?  Most pre-marital accumulations and monies are excluded from the marital estate, but consider whether there are extenuating circumstances justifying inclusion in the marital estate.  Did one spouse contribute to the acquisition, improvement, or accumulation of the separate property?
    
3. Is the asset a gift or inheritance?  Many gifts are considered marital property unless there was a written agreement stating that it was not such.
    
4. Does the asset really belong to a third party, or is it an asset of the marital parties?

What type of expert should be hired to uncover and evaluate the actual worth of your spouse’s hidden assets? 

Mr. Al Golden specializes in providing litigation support, expert witness, forensic accounting, income and estate taxation, comprehensive business valuation, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com