Handling Hidden Assets in a Washington Divorce

Divorce requires both parties to make full and honest financial disclosures. But not everyone plays by the rules. There are often concerns that a spouse may attempt to hide money, underreport income, or move assets to avoid dividing them during the divorce. In Washington, this is not only unethical, it can lead to serious legal consequences.

Common Ways Assets Are Hidden

Hidden assets can take many forms. Some of the most common examples include:

• Transferring money to family or friends.
  
  
• Creating fake business expenses.
  
  
• Undervaluing or concealing business interests.
  
  
• Withdrawing cash from joint accounts.
  
  
• Opening secret bank or cryptocurrency accounts.
  
  
• Overpaying taxes or debts to reclaim funds after the divorce.

How Hidden Assets Are Discovered

Washington family law allows extensive discovery tools to uncover hidden income and property, including:

• Interrogatories and Requests for Production: Formal written questions and document requests.
  
  
• Subpoenas: Obtaining records directly from banks, employers, or third parties.
  
  
• Depositions: Questioning a spouse or witness under oath.
  
  
• Forensic Accountants: Financial experts who trace money movements, review tax filings, and uncover irregularities.

The more organized your financial documentation is, the easier it is to spot inconsistencies. You can work with your attorney informally to review this information, and if you believe a more thorough investigation is required, hiring a forensic account to perform a full audit may be helpful.

Consequences of Hiding Assets

Courts do not look kindly on dishonesty. A spouse caught hiding assets can face:

• Loss of credibility before the judge.
  
  
• An unequal division of property as a penalty.
  
  
• Payment of the other party’s attorney’s fees.
  
  
• Potential sanctions or contempt findings.

In some cases, intentionally hiding assets may even rise to the level of fraud.

What to Do if You Suspect Hidden Assets

If you believe your spouse isn’t disclosing everything:

1. Stay calm and let your attorney handle communication.
   
   
2. Gather copies of financial statements, tax returns, and account records.
   
   
3. Avoid direct accusations without proof - let evidence lead the argument.
   
   
4. Discuss the possibility of hiring a financial expert early in the process.

Protecting Your Rights

Dividing property fairly requires a complete financial picture. At Magnuson Lowell, P.S., we help clients uncover hidden assets and ensure full transparency in divorce proceedings. Our team uses strategic discovery tools and expert resources to protect your financial future.

Call us today for a free telephone case evaluation 425-800-0573 to discuss your Washington divorce and learn how to ensure your settlement is truly fair.