When you get divorced in Nevada, you generally have the right to split shared assets equally. You also have an obligation to disclose all your assets so that a fair distribution can occur. What happens when one spouse attempts to hide assets from the other, though? Uncovering hidden assets in a divorce can be challenging, especially if your spouse has gone out of their way to attempt to conceal their property.
If you are involved in or planning a divorce and suspect your spouse may have hidden assets, contact Mills & Anderson. Uncovering hidden assets and accounts can be difficult, particularly if you try to find them on your own. Having experienced, relentless family law attorneys like those at Mills & Anderson can make the difference between discovering assets and searching in vain. Our experience has taught us about where to look and the kinds of tricks people use to hide assets.
Please reach out to us online or call (702) 386-0030 today to learn how we can assist you.
Asset Distribution in Divorce
Nevada is a community property state. Unless you or your spouse signs an agreement to the contrary, nearly all property that either spouse earns or otherwise acquires after the marriage begins is community property belonging equally to both spouses.
Exceptions to this rule are separate property and include:
- Property owned before the marriage,
- Gifts to one spouse,
- Inheritances, and
- Personal injury lawsuit damages.
This means that when you get married, you and your spouse share all other property acquired from that point forward equally. Newly acquired property remains community property until divided by the court or by an agreement between you and your spouse.
When you divorce, Nevada law declares that community property should be split equally unless compelling reasons exist to distribute assets unequally. So, if your spouse acquired community property during your marriage, you are typically entitled to half of that property.
During the divorce process, each spouse must complete financial disclosure forms under penalty of perjury. Providing false or incomplete information can result in serious legal consequences, especially if you obscure assets on purpose.
How People May Try to Hide Assets
When people want to know how to find hidden assets in divorce, they often picture secret offshore bank accounts. While they may exist, many hidden assets in divorce are concealed in more subtle but equally deceptive ways. It’s common for hidden assets found after divorce to trace back to one of these subtly deceptive tactics.
Offshore Accounts
You may have reason to suspect your spouse of hiding assets in offshore accounts. It may even be part of your motivation for getting divorced. But you may not know where to begin your search to find those secret accounts.
Common countries people use to hide property offshore include:
- Switzerland,
- Hong Kong,
- The Cayman Islands,
- Belize,
- Singapore,
- Panama,
- The Seychelles, and
- Mauritius.
Although this list is a good starting point, your spouse may also have offshore accounts in several other countries.
Manipulating Assets
Apart from offshore accounts, your spouse may try to conceal property by:
- Creating trusts you cannot access,
- Giving “gifts” on the secret agreement the gift will be returned once the divorce is final,
- Requesting compensation be delayed or paid in cash or other easy-to-conceal formats,
- Opening accounts under a business entity name to separate funds from personal accounts,
- Underreporting income from a closely held business by delaying invoices or contracts,
- Creating fake debts to friends or family members to reduce the appearance of net worth,
- Overpaying taxes intentionally so that refunds are issued after the divorce is finalized,
- Manipulating operational business costs, or
- Manipulating bank statements or other financial records.
If you suspect your spouse is trying to keep assets from you in offshore accounts, it often pays to investigate whether they are using other techniques to hide assets as well.
Digital Strategies
A spouse hiding assets in a divorce may use strategies such as transferring money to digital payment platforms or online wallets not linked to shared accounts, or investing in cryptocurrency, which can be transferred outside traditional banking systems. Digital assets like Bitcoin or Ethereum may not appear on conventional bank statements, yet they may represent significant community property.
Red Flags That May Signal Hidden Assets
If you suspect your spouse is hiding assets, certain warning signs may support that concern.
Watch for:
- Sudden secrecy around finances,
- Missing account statements,
- New passwords or restricted account access,
- Claims of reduced business income without explanation,
- Large withdrawals or transfers before separation,
- Unusual loans to friends or relatives, and
- Spending that does not match reported income.
Financial concealment often begins before a divorce filing. Reviewing several years of financial records can help identify patterns or inconsistencies.
Asset Discovery During Divorce
During the divorce process, you are entitled to what lawyers call discovery. Discovery is a key part of how to find hidden assets in a divorce. It allows you to request that your spouse turn over all documents relevant to the divorce, including information about all community and separate property they own. You can also perform your investigations if you suspect they are not being forthcoming.
If your spouse refuses to turn over or allow you access to documents, you can generally file a subpoena compelling a bank or other financial institution holding such information to provide it. The court can also assist in gathering the necessary information by finding a spouse who consistently refuses to provide it in contempt of court. Additionally, the court may also issue additional penalties and sanctions to compel the disclosure of requested information.
Techniques for Finding Hidden Assets
During discovery, you have the chance to investigate your spouse’s assets with the force of law behind your requests.
Often, you want to look at several items:
- Your spouse’s tax returns,
- A record of deposits into shared and separate bank accounts,
- Bank account transfers to strange locations or for undisclosed reasons, and
- Paycheck and bonus information from your spouse’s job.
In complex cases with high asset value, hiring a forensic accountant can be very useful during this period to ensure you do not overlook anything. Discovering hidden assets often involves reviewing several years’ worth of financial information, which makes a forensic accountant very helpful.
What Happens When a Spouse Hides Money During a Divorce? The Consequences of Hiding Assets
When a spouse hides assets during a Nevada divorce, the court has several tools to address that misconduct. The consequences can affect not only how to divide property, but also whether the court imposes penalties on the concealer.
Contempt of Court
If you discover your spouse has been hiding assets from you, the court may hold them in contempt. Contempt of court is a quasi-criminal finding that can result in fines and, in rare circumstances, jail time.
Unequal Division of Community Property
In addition to contempt, the court can consider one spouse’s attempt to bypass legal disclosure requirements when deciding whether a compelling reason exists to divide property unequally. Although Nevada is a community property state and generally requires equal division, intentional misconduct can justify a different outcome.
The court may:
- Award the dishonest spouse less than half of the community assets,
- Refuse to grant certain requests made by that spouse, or
- Order the misbehaving spouse to pay your attorney’s fees and court costs.
When a spouse hides money during a divorce, that behavior can directly impact how assets are ultimately divided.
Recovering Hidden Assets After Divorce
Nevada law also allows you to return to court after your divorce is finalized if you later discover concealed assets. You must file a motion requesting division of the undisclosed property within three years of when you discovered, or reasonably should have discovered, the concealment.
“Reasonably should have discovered” refers to the point when a careful and attentive person in your position would have uncovered the asset. Courts look at whether the information was available and whether a reasonable review of financial records would have revealed the issue.
When the court reviews newly discovered property, it still begins with the presumption of equal division. However, if the court determines that the assets were intentionally and fraudulently concealed during the original proceedings, it may award up to 100% of the hidden asset to the spouse who uncovered the fraud and brought it to the court’s attention.
Mills & Anderson Can Help
Divorce is one of the most stressful events you can go through. Dealing with an uncooperative spouse who refuses to be forthcoming can make it even harder. Hidden assets in divorce can frustrate the entire legal system, resulting in serious consequences for the concealer.
If you need help working through a divorce, including locating assets your spouse may be attempting to hide from you, Mills & Anderson can help. Our years of experience in family law mean we know where to look for assets or who to ask to help us find them.
Contact us online or call (702) 386-0030 today to learn how we can take the pressure and frustration of trying to locate everything you are entitled to off your shoulders.
Frequently Asked Questions
How Do I Prove My Spouse Is Hiding Assets?
Proof often comes from financial inconsistencies. Comparing disclosures to tax returns, bank statements, loan applications, and spending patterns can reveal discrepancies.
Are Retirement Accounts Community Property in Nevada?
Yes. Contributions made during the marriage are typically community property, even if the account is in only one spouse’s name.
Can My Spouse Legally Move Money Before Filing for Divorce?
A spouse may access marital funds during the marriage, but once divorce proceedings begin, courts may restrict transfers.
What Happens If My Spouse Lies on Financial Disclosures?
You sign financial disclosures under penalty of perjury. Lying can result in contempt, monetary sanctions, unequal asset division, and payment of attorney’s fees.
Do I Need a Forensic Accountant to Find Hidden Assets?
Not in every case. In divorces involving business ownership, high income, or complex investments, however, forensic accountants can play a critical role in identifying concealed assets.
