What are the most common signs of financial fraud in a divorce?

What are the most common signs of financial fraud in a divorce?

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When divorcing, there are many factors that come into play when dividing marital assets fairly between a divorcing couple as New York is an equitable distribution state. That being said, property distribution is one of the most contentious issues couples face when dissolving their marriage as their hard-earned assets are at stake. In light of the high stakes, many individuals hide money or financial information during a divorce. However, not only is this illegal, but it will result in an unfair divorce settlement. When divorcing, it is critical to have all of your financial cards on the table to reach a fair settlement. If you are seeking a divorce, you need a skilled Nassau County Division of Assets Attorney on your side who can help you detect signs of financial fraud. Keep reading to learn about the most common signs of financial fraud. 

What red flags indicate of financial fraud in a divorce?

When divorcing there are several circumstances in which one spouse may commit financial fraud to cheat their former spouse out of money. For instance, when one spouse hides assets to keep them out of the property division process it is considered financial fraud. Financial fraud can also occur if one spouse falsely reports their income or fails to report their income to the IRS. Additionally, it can occur if one spouse misrepresents the value of investments or incurs significant debt without the knowledge or consent of their spouse. As you can see, there are various types of financial fraud that can occur during a divorce which is why it is critical for individuals undergoing a divorce to know the most common signs to ensure they are not taken advantage of. If you believe your former spouse is acting suspiciously, the following signs could mean they are committing financial fraud:

  • They are control financial matters.
  • They restrict your access to accounts.
  • They will not let you see financial statements or records.
  • They refuse to explain certain transactions.
  • They lie to you about money.
  • They make many cash transactions.
  • They move money around.
  • They have bank accounts and credit cards you did not know about.
  • They have stashed separate money away, but continue to use shared martial funds.
  • They ask you or manipulate you into signing legal documents you do not understand.

If you notice a change in your spouse’s behavior or identify more than one of these signs, it is more than likely your spouse is guilty of financial fraud. In this case, you should retain an attorney who can work in conjunction with a forensic accountant to determine if there are any inconsistencies in your financial statements. You should also never be in the dark about your finances as it makes it easier for your spouse to hide money and financial information.

If you are dissolving your marriage, you should consider consulting our talented attorneys who can help you protect your assets. With years of experience, our firm can help you detect financial fraud to ensure  a fair divorce settlement.

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