Dividing property during divorce isn’t always straightforward, especially when one spouse hides assets. In Pennsylvania, courts follow the principle of equitable distribution. This means marital property must be divided fairly, although not necessarily equally. If your spouse is hiding assets, however, the court can’t divide what it doesn’t know exists.
Understanding What Counts as a Hidden Asset
A hidden asset is anything of value that your spouse hides (or undervalues) to avoid dividing it during the divorce process. For example:
- Undisclosed bank accounts
- Unreported income (such as income from cash-based work or side businesses)
- Deferred bonuses or stock options
- Fake debts to friends or family
- Transferred property or accounts
- Collectibles, jewelry, or artwork kept out of the financial disclosure
Pennsylvania’s Disclosure Requirements in Divorce
Under Pennsylvania law, both spouses must submit a full inventory of their assets and debts before they can be divorced. Each side must complete an affidavit of income and expenses, as well as a detailed inventory of marital and non-marital property.
If the court discovers that your spouse has hidden assets, the judge can impose sanctions or adjust the distribution to account for the deception.
Red Flags That May Indicate Hidden Assets
Sometimes financial dishonesty is obvious, but often, the other spouse doesn’t suspect a thing. Look for the following warning signs:
- A sudden drop in their reported income while maintaining the same lifestyle
- Missing financial records or documents that you could access before
- Suspicious bank transfers or payments to unknown parties
- Claiming their debts have increased with vague explanations
- Business reporting losses despite continued profitability
- Discovery of post office boxes or separate addresses linked to financial accounts
You don’t need hard proof to raise concerns. If something feels off, you and your attorney can question it through the legal process.
How to Start Uncovering Assets
There are several practical ways to start gathering information during the divorce process:
- Request financial records: You have the right to ask for bank statements, tax returns, credit card statements, and retirement account records through formal discovery.
- Use subpoenas: If your spouse refuses to provide documents, the court can issue subpoenas to banks, employers, or other parties.
- Depose your spouse: A deposition is a formal interview under oath. Your spouse must answer questions about their finances truthfully, and false statements can have legal consequences.
- Hire a forensic accountant: In complex cases, a financial expert can help. A forensic accountant can trace hidden money, investigate odd transactions, and provide analysis to support your case.
- Review tax returns carefully: IRS documents often reveal “hidden” income sources. They can also include asset sales that your spouse didn’t disclose in divorce filings.
How Courts May Respond to Hidden Assets
If the court finds that your spouse intentionally failed to disclose assets, there are several ways it may resolve your case. Because Pennsylvania is an equitable distribution state, the court considers each party’s conduct when deciding how to distribute the marital property. Hiding assets can result in a larger award to the honest spouse—or a financial penalty against the dishonest one.
Discuss Your Case with an Experienced Pennsylvania Divorce Lawyer
You have the right to a fair division of your marital property. If you believe your spouse is hiding money or assets, you have legal tools to protect your interests and fight for a fair settlement.
The Law Offices of Dawn K. Gull can help you identify potential red flags and gather the right documentation. When you work with us, our firm will guide you through the divorce process and uncover hidden property. Contact us today to discuss your options.