Steps to Take if You Suspect Your Spouse Is Hiding Assets

When going through a divorce, by agreement or other means, both spouses will typically fully disclose their assets and debts. Unfortunately, not everyone follows the rules. In some cases, one spouse may attempt to hide income, transfer funds, or undervalue property to avoid sharing it during divorce proceedings. If you suspect that your spouse is hiding assets, there are steps you can take to protect your financial interests.

Understand Why Hidden Assets Matter

Washington is a community property state, which generally means both spouses are entitled to an equal share of the assets acquired during the marriage. If one spouse hides assets, it can result in an unfair division, potentially depriving the other of their rightful share.

Courts take hidden assets seriously. If a judge finds that a spouse intentionally concealed property or funds, the dishonest party could face financial penalties or a less favorable outcome in the final property division.

Look for Red Flags

While not always easy to spot, there are signs that your spouse may be hiding assets, including:

• Sudden changes in spending or saving habits
  
  
• Unexplained withdrawals or wire transfers
  
  
• Missing financial statements or tax documents
  
  
• Overpaying creditors or the IRS (to receive a refund later)
  
  
• Transferring property to friends or relatives
• Claiming a business is suddenly losing money

If you notice these warning signs, it’s important to raise your concerns with your attorney as soon as possible.

Gather Financial Documents

Start collecting as much financial information as you can. The more documentation you have, the easier it will be to identify inconsistencies. Focus on:

• Bank account and credit card statements
  
  
• Tax returns for the past several years
  
  
• Pay stubs and income records
  
  
• Mortgage and loan documents
  
  
• Business financials, if applicable
  
  
• Investment and retirement account statements

These documents can help reveal unexplained transactions, hidden accounts, or transfers to third parties.

Request Formal Discovery

If voluntary disclosure is incomplete or suspicious, your attorney can use the discovery process to compel additional information. Tools available during discovery include:

• Interrogatories (written questions your spouse must answer under oath)
  
  
• Requests for production of documents
  
  
• Subpoenas for bank or business records
  
  
• Depositions (in-person questioning under oath)

Discovery allows you to gather detailed financial information and create a clearer picture of the marital estate.

Hire a Forensic Accountant

In complex or high-asset cases, a forensic accountant may be necessary. These financial professionals specialize in tracing money, identifying unusual transactions, and valuing hidden assets. Forensic accountants can be especially helpful when one spouse controls a closely held business or uses multiple accounts to obscure income.

Involve the Court if Necessary

If it becomes clear that your spouse is hiding assets, your attorney can request court intervention. A judge may order financial sanctions, award a greater share of property to the honest spouse, or reopen the case if hidden assets are discovered after the divorce is finalized. Courts do not look favorably on deception and often use their discretion to correct financial misconduct.

Protect Yourself During the Process

While it can be frustrating to suspect your spouse is hiding assets, it’s important to remain calm and strategic. Avoid confronting your spouse directly, especially if they are already being dishonest. Instead, work closely with your attorney to document your concerns and pursue the appropriate legal avenues.

Work with an Experienced Washington Divorce Attorney

At Magnuson Lowell, P.S., we understand how stressful and unfair it can feel when a spouse tries to manipulate the divorce process. Our experienced legal team can help you uncover hidden assets, protect your financial future, and fight for a fair resolution. We offer free telephone case evaluations, so contact us today to discuss your case and take the next step toward securing what you deserve.

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