Understanding Hidden Assets in High Net Worth Divorce

High net worth divorces in New York are rarely straightforward. When a marriage involves real estate, private businesses, and international investments, the financial picture quickly becomes complicated. Unfortunately, when the stakes are high, one spouse may try to shield property or funds to keep them out of the final settlement. At the Law Office of Vivien I. Stark, P.C., our New York City high net worth divorce attorney focuses on pulling back the curtain on these finances to help you get your fair share.

Common Tactics Used to Conceal Wealth

In a high-stakes divorce, people can get creative with how they mask their actual net worth. It is rarely as simple as a secret shoebox of cash. Instead, it often involves sophisticated financial maneuvering. Here are the most common tactics we see:

• Manipulating income: Business owners might intentionally delay invoicing clients until after the divorce or start running personal lifestyle expenses through the company books to make their income look smaller than it is.
• Business ghosting: A spouse might create ghost employees to funnel company funds to a friend or relative, or hold off on signing a major new contract until the divorce is finalized.
• Crypto and digital wallets: Because Bitcoin and other cryptocurrencies operate outside traditional banks, they are a frequent choice for hiding money. Moving funds into cold storage is a common way to keep assets off the radar.
• Loaning assets to a friend: A spouse may suddenly sell or gift a luxury car or expensive artwork to a friend for a suspiciously low price, with the secret understanding that the item will be “sold” back once the divorce is over.
• Shell companies and offshore accounts: Setting up a business that exists only on paper, or moving money to jurisdictions with strict privacy laws, can make it incredibly difficult to track who actually owns the capital.
• Delayed bonuses: Executives may ask their company to defer a large bonus or stock options until the next fiscal year to keep that value out of the current marital pot.

Watching for Red Flags

Sometimes the numbers do not tell the story, but the behavior does. Be on the lookout for a sudden, unexplained drop in your spouse’s income, a newfound privacy regarding bank logins or tax returns, or large, unusual withdrawals from your joint accounts.

Tools and Techniques for Uncovering Hidden Assets

Finding what a spouse has hidden requires a mix of legal pressure and financial private eyes. We frequently partner with forensic accountants who specialize in tracing money trails. They do not just look at the math. They look for inconsistencies, such as a lifestyle that does not match a reported salary, that suggest the spouse is stashing wealth elsewhere.

We back this up with formal discovery. This includes issuing subpoenas for bank records, conducting depositions, and using interrogatories to force the other side to answer tough questions under oath.

The Risks of Concealment

Trying to hide assets is not just a dirty trick. It is illegal. In New York, both parties must sign a Statement of Net Worth under penalty of perjury. If a judge catches a spouse lying, the consequences are severe. Not only can they face legal sanctions, but the court will often award the innocent spouse a significantly larger portion of the remaining assets as a penalty.

In a high net worth divorce, you cannot afford to take your spouse’s financial disclosures at face value. A thorough investigation is the only way to ensure that equitable distribution is actually fair. If you have a high net worth divorce, it’s crucial to retain experienced attorneys like the Law Offices of Vivien I. Stark, P.C., to guide you through the process.