Can your spouse hide assets in a foreign country?

On Behalf of | Jan 30, 2025 | Divorce

The fear of a spouse hiding wealth abroad is a common concern. Divorce can feel like a hide-and-seek game, especially when involving international assets. But can your spouse conceal assets in a foreign country? Explore this issue and understand your rights and options under New York law.

What are the legal obligations for financial disclosure?

In New York, both parties in a divorce must provide full financial disclosure. As a requirement, you must share information on all assets, regardless of their location, income from all sources, your debts and liabilities. Not being honest about assets can result in severe penalties. The court may:

  • Give a larger share of marital property to the other spouse
  • Order payment of the other spouse’s attorney fees
  • Hold the non-disclosing spouse in contempt of court

These consequences apply even if the hidden assets are in a foreign country.

How can hidden foreign assets be uncovered?

If you think that your spouse may be hiding assets abroad, several methods can help you. They include:

  • Forensic accountants can help uncover assets. They can help identify hidden or undisclosed assets that may not be immediately apparent, such as bank accounts, properties, or investments.
  • In the context of uncovering assets, you can use a subpoena to compel banks, financial institutions, or other entities to release financial records that may reveal the existence of hidden assets.
  • Deposing a spouse or relevant third parties (such as business partners or accountants) can help gather information about assets that may be concealed or not fully disclosed.
  • International asset searches often require knowledge of foreign legal systems and financial regulations, which can be essential in uncovering assets hidden across borders.

Remember, New York law considers concealing assets as fraud. The act can lead to criminal charges and civil penalties if you prove it.

How can you ensure financial transparency?

An attorney can offer valuable support in your quest for financial transparency by guiding you through international asset discovery, using legal tools to compel disclosure of foreign assets, interpreting foreign financial documents and laws, and coordinating with international experts when needed. With their knowledge of New York divorce laws and experience handling complex financial situations, an attorney can help protect your spousal rights and ensure a fair division of marital assets.