New York, NY family law attorney Lisa Zeiderman talks about some of the ways a spouse might hide assets during a divorce. Hiding assets during a divorce is a common tactic that attorneys frequently encounter. Often, clients bring a spreadsheet of assets reportedly provided by their spouse. However, even when these spreadsheets appear complete, conducting a thorough discovery process and exchanging statements of net worth remain essential. Attorneys regularly uncover significant undisclosed assets that were omitted from these supposedly “accurate” spreadsheets.

One common method for hiding assets involves tax overpayments. By overpaying taxes and allowing the refund to apply to the following year’s tax return, an individual can effectively conceal an asset. Attorneys should carefully examine tax returns, especially the line for refunds, to check for hidden overpayments.

Deferred compensation or bonuses are also used to obscure income. Some individuals may arrange with their employer to delay a bonus or compensation, making it difficult to determine actual earnings. By deferring income, it becomes harder for the non-earning spouse to establish accurate financial figures, which may affect asset division or support calculations.

Additionally, restricted stock units (RSUs) are sometimes concealed as a form of compensation. RSUs typically vest over several years, and individuals may not always disclose them, particularly if they vest all at once. Investigating this area is often necessary to ensure all financial entitlements are accounted for.

Trust funds can serve as another means of hiding assets. An individual may fail to disclose assets held in trust or distributions they receive. A meticulous review of discovery documents is crucial, as thoroughly examining all documentation is key to identifying potential hidden assets.