How Hidden Assets Can Be Found

Key Takeaways

• Hire a forensic accountant if you suspect your spouse is hiding assets or income—they can trace unusual expenses, discover unknown accounts, and verify income through tax returns, 1099s, W-2s, and IRS transcripts
• Request IRS transcripts and review all Form 1099s, W-2s, and 5498s to identify accounts and income sources you weren't aware of, as most income is reported to the IRS
• Understand your state's asset division rules: community property states treat all marital earnings as 50/50 owned by both spouses, while equitable distribution states allow courts discretion that doesn't always mean equal splits
• Keep pre-marital assets, inheritances, and gifts in separate accounts with clear documentation to establish they are non-marital property and not subject to division
• Build a professional team including a divorce attorney, forensic accountant, and financial advisor to navigate complex assets like stock options, deferred compensation, and tax implications during divorce proceedings