Divorce is supposed to be about a “fair and equitable” split of property. But that only works if both people are being honest about what they actually own. In my experience, when a marriage starts to break down, some spouses start getting “creative” with the finances. They might hide cash, “loan” money to friends that doesn’t exist, or suddenly claim their successful business is failing.
If you suspect your spouse isn’t being transparent, you don’t have to just take their word for it. Maryland’s legal discovery process gives us the tools to dig into the truth.
The “Red Flags” of Hidden Assets
Usually, there are signs. If your spouse has suddenly become secretive about the mail, or if they’ve changed the passwords to bank accounts you used to access, that’s a red flag. Other things to watch for include:
- Lifestyle vs. Income: If they claim they’re only making $50k a year but they’re still buying expensive watches or taking trips, the money is coming from somewhere.
- The “Failing” Business: If a business that has been profitable for a decade suddenly has no value the moment a divorce is filed, it’s often a sign of manipulated books. (See our divorce for business owners page for more on this).
- Delayed Income: Sometimes a spouse will ask their boss to hold off on a big bonus or commission until after the divorce is final.
Using the Discovery Process
In a contested divorce, we don’t have to ask for permission to see the records—we have the right to them. We use a few specific tools to get the full picture:
- Document Requests: We can demand years of tax returns, credit card statements, and business ledgers. If they refuse to hand them over, we can ask the court for sanctions.
- Subpoenas: If we don’t trust the records your spouse provides, we can go straight to the source. We can subpoena banks, employers, and even investment firms to get the raw data.
- Depositions: This is where we sit your spouse down under oath. It is much harder to maintain a lie about a “hidden” account when you’re being recorded and facing the threat of perjury.
When to Bring in a Forensic Accountant
In high-asset cases or situations involving complex business interests, a lawyer isn’t always enough. That’s when we bring in a forensic accountant. These experts are trained to “follow the money.” They look for patterns in spending, trace wire transfers, and can often find where money was diverted into “shell” companies or hidden accounts. You can read more about how this works on our high-asset divorce and complex property division pages, or check out the Forensic accounting entry on Wikipedia.
What You Can Do Right Now
If you think your spouse is hiding assets, the best thing you can do is start gathering information before you file. Make copies of tax returns, bank statements, and retirement account info. Once a divorce is filed, some spouses get much better at covering their tracks.
Don’t let the fear of hidden assets push you into a settlement that leaves you financially unstable. If the numbers don’t feel right, they probably aren’t. It’s better to spend the time now to get a full accounting than to find out years later that you walked away from your fair share of the marital estate.
If you’re worried about the financial side of your divorce, let’s talk. We can look at the red flags in your case and figure out which discovery tools are going to be the most effective for your situation.
This article is for general informational purposes and is not legal advice.
