Hidden Assets in Divorce: Warning Signs and How an Attorney Can Help Uncover Them

In divorce cases, when it comes to the issue of the allocation of marital property and debt, Missouri is a “show me the money” state. The law requires that both spouses disclose their assets, debts, and income as part of the divorce process; each must provide an honest picture of their financial circumstances. This ensures that when Missouri courts divide marital property using the factors in the Revised Statutes of Missouri Section 452.330, they have a true and accurate report of what each spouse has and what the divorcing couple has jointly.

Few people enter a divorce believing their soon-to-be ex-spouse will try to hide money. Still, it happens, in ways both big and small. Whether your spouse was greedy or generous during the marriage, a pending divorce can change how they feel about money. This doesn’t typically show up in an obvious or dramatic way, like cash stuffed into a shoebox in the closet; instead, it starts with small things that can be explained away, like a shift in spending habits or less income reported by their business as the marriage draws to a close.

None of these examples prove something is amiss with marital money on their own. But if you see more than one change and it doesn’t sit right with you, it could signal that your spouse doesn’t plan to disclose all the money.

In this article, we’ll look at some common warning signs of hidden assets in divorce in Missouri, and how attorneys can help when these warning signs appear, no matter what stage of the divorce process you’re currently in.

Key Takeaways

• Missouri law requires full financial disclosure in divorce, and concealing assets can lead to court-imposed penalties.
• Warning signs are worth investigating. However, they aren’t in and of themselves proof of hidden assets in divorce in Missouri. Working with an attorney can help you uncover whether your spouse is hiding assets.
• Attorneys use discovery to uncover missing assets and identify gaps in a spouse’s financial disclosures.
• Forensic accountants are trained to trace complex finances, including business interests, cryptocurrency, and any source of unreported income.
• Seeking help early can protect your financial interests.

Warning Signs That Point to Hidden Assets

The following list contains some common clues, but not proof on their own necessarily, that your spouse may be hiding something. If you notice any of these behaviors, they could hint that your spouse’s finances may need a closer look.

Some common warning signs of hidden assets in divorce in Missouri include:

• Becoming reluctant to share financial information that was previously openly discussed. You and your spouse may have a history of openness with one another around financial information, but this changes once your divorce is inevitable. If they become silent or begin communicating defensively when asked routine questions about account statements, business income, or changed passwords to financial accounts, this could be a clue.
• New accounts, account information, or activity. This category captures things like new accounts you didn't know about, or unusual transfers of “gifts” of money to friends or family.
• Their successful business suddenly becomes less profitable. This can look like a sudden, unexpected spouse drop in reported income or unusual expenses right around the time you decide to get a divorce.
• Cash withdrawals. If statements from bank or investment accounts show large cash withdrawals that don't match your normal spending patterns, this could also be a clue.
• Shopping sprees. The biggest concern here is when a spouse makes large purchases on things that can later be resold, in a way they didn’t before, such as acquiring high-end collectibles.

None of these behaviors is necessarily concrete proof that your spouse is trying to hide assets. Instead, a change in multiple money habits could be a clue that further investigation into their financial disclosure could be warranted.

Missouri Law Requires Full Financial Disclosure

Whether your marriage is happily ending or disagreement is the new normal, Missouri law requires that you both provide an honest, complete picture of your finances. This means disclosing, under oath, assets, debts, income, and other relevant financial information. Hiding money or omitting assets from financial disclosures isn’t just unfair to the other spouse; it can violate the law and, if discovered, lead to serious consequences.

Missouri law allows spouses to seek full financial disclosure when one spouse's information seems incomplete. Let’s talk through how the legal process can uncover missing information.

How an Attorney Can Help Uncover Hidden Assets in Divorce in Missouri

Discovery is the legal vehicle for gathering information in a divorce case. Discovery can prove that your spouse’s disclosure is honest and complete. Or it can point to holes in what they’ve provided, which is how the clues you’ve noticed turn into verifiable proof.

Discovery tools that can help to uncover hidden assets in divorce in Missouri include:

• Interrogatories. These are written questions that your spouse must answer in writing, under oath.
• Requests for production. This type of request requires that your spouse give all financial documents requested, and again, under oath.
• Subpoenas. If a spouse is uncooperative and you have reason to believe there are accounts or business records that a third party has, a subpoena is a way to request these records directly from a bank or your spouse’s employer or business partner.
• Depositions. A spouse or a relevant third party can be required to sit for an in-person deposition, which means they can be questioned by your attorney and must answer under oath. The in-person, real-time element makes evading questions more difficult than providing written responses.

Missouri law requires that both parties in a divorce file sworn financial disclosures that include specific information about income, expenses, property, and debt. These discovery tools are available under the Missouri Rules of Civil Procedure to make sure these disclosures are true and accurate. If a spouse gives false information or omits information, they can face sanctions or receive a less favorable division of property in the final divorce order.

When a Forensic Accountant Becomes Necessary

Complex cases can benefit from a fine-tooth-comb analysis of marital assets and debts. This is the role of forensic accountants in divorces: to discover if all the money is on the table. These professionals are especially valuable when sophisticated assets are involved, such as cryptocurrency and one or multiple business interests. Forensic accountants are trained to use tax returns and business records to trace money. They are skilled at determining whether there is unreported or underreported income, or tracing cryptocurrency transactions that a layperson may believe to be untraceable. And it’s not unusual for forensic accountants to be a part of the divorce process; they don’t signal contention, but rather conscientiousness about capturing the entire financial landscape.

What Happens if Hidden Assets Are Found After the Divorce Is Final

If you find out after your divorce is final that your spouse hid assets, there are certain avenues for recourse. Under Missouri Supreme Court Rule 74.06, a court may set aside a final judgment, including property division, in a divorce if new circumstances come to light that evidence fraud or concealment. This isn’t an automatic remedy, however, and the law imposes strict time limits and legal requirements. In other words, discovering hidden assets after the divorce doesn’t guarantee you can reopen the property division piece, but it may give you grounds to ask a judge to reconsider the issue.

A Missouri case also shows this option is more than a theory. In Olofson v. Olofson, the Missouri Supreme Court reversed a lower court’s dismissal of a wife’s motion to set aside the property division based on alleged fraud, allowing her claim to move forward for a hearing. The Court did not decide whether fraud had actually occurred, but it confirmed that the claim deserved to be heard. This provides an important safeguard for spouses who discover potential concealment of assets after their divorce is finalized.

The best approach is always to address concerns as early as possible. Raising questions about missing assets before you have your divorce decree puts you in a more powerful position to protect your interests, while also avoiding the added challenge of revisiting a court’s decision later.

Talk to an Attorney if Something Feels Off

Hidden assets in divorce in Missouri is a serious matter. However, you don’t have to catch your spouse red-handed hiding assets; if something feels off in how your spouse starts spending money once divorce becomes inevitable, it’s reasonable to ask for help. And the earlier you do, the better. You want the property division part of your divorce to come from honest financial disclosures from both you and your spouse, even if that means bringing in the discovery process to ensure transparency across all finances.

Mark Wortman works with discovery tools and forensic accountants to help Kansas City area clients uncover concealed assets and make sure property division reflects the full financial picture. Contact his office today to schedule a confidential consultation to discuss your concerns about whether your spouse’s financial disclosure is a full and honest one.