Is Your Spouse Hiding Assets? What to Look For in a Virginia Divorce
A Virginia divorce is supposed to involve full financial honesty from both sides. While Virginia law requires it, not every spouse plays by the rules.
When one party tries to conceal income or otherwise hide assets, the other spouse can end up with far less than they are entitled to. Our experienced Virginia divorce lawyer explains common warning signs and how to protect your rights.
Warning Signs of Hidden Assets in a Virginia Divorce
Under Virginia Code Section 20-107.3, marital property must be divided equitably between spouses in a Virginia divorce. However, the process depends entirely on both parties making a complete and honest financial disclosure.
To get more than they would otherwise be entitled to, some spouses try to hide assets. Common warning signs include:
- Sudden claims of business losses or drops in income that do not match their lifestyle or spending habits.
- Large cash withdrawals from joint accounts, especially ones made shortly before or after separation.
- Transfers of money or property to family members or close friends for little or no stated reason.
- Delayed bonuses, commissions, or raises that seem to be timed around the divorce proceedings.
- Unexplained or new debts and expenses, which may signal money being moved or spent to reduce the apparent marital estate.
- Overpayments to the IRS or other creditors can be reclaimed as a refund once the divorce is final.
If you notice any of these patterns, document what you can and get legal help as soon as possible.
How to Protect Yourself Against Hidden Assets in Virginia Divorce Proceedings
If you are getting a Virginia divorce and suspect your spouse is hiding assets, take these practical steps to protect yourself:
- Gather copies of recent tax returns, bank and investment statements, mortgage documents, retirement account records, and other financial documents.
- Review credit card statements for unusual purchases, cash advances, or payments to unfamiliar accounts or individuals.
- Pay attention to lifestyle inconsistencies, such as a spouse who claims financial hardship while continuing to spend freely.
- Note any changes in business activity, particularly if your spouse owns a company and has begun reporting lower revenues or inflated expenses around the time of the divorce.
- Avoid confronting your spouse directly about your suspicions, since doing so can give them time to further conceal or move assets.
Virginia law provides powerful tools to compel financial disclosure. Your lawyer can use discovery to request bank records, tax returns, business financial statements, and other documents. Subpoenas are also an option and can be issued directly to financial institutions, employers, and other third parties when a spouse refuses to cooperate.
Contact An Experienced Virginia Divorce Lawyer
Hidden assets are common in Virginia divorce cases and can impact your rights in a settlement. At Schwartz Kalina, PLLC, we take the legal actions needed to compel full disclosure and hold your spouse accountable. To request a consultation with our experienced Virginia divorce lawyer, call or contact us online today.
Sources:
law.lis.virginia.gov/vacode/title20/chapter6/section20-107.3/
courts.state.va.us/courts/scv/amendments_tracked/rule_4_01_interlineated.pdf
