Hidden Assets in Divorce: What Spouses Need to Watch For in NC

You may feel like you’re doing everything right—gathering documents, being honest about your finances, and trying to move forward in a respectful way. But if your spouse isn’t playing by the same rules, it could cost you far more than peace of mind. It could cost you your fair share of the life you’ve built.

Unfortunately, hidden assets are more common than many people think, especially in high-net-worth divorces or relationships where one spouse handled most of the financial decision-making.

Under North Carolina’s equitable distribution laws, marital property is divided fairly between spouses—but that fairness depends entirely on transparency. If one party withholds information or conceals property, it undermines the entire process.

And the consequences can be serious. Hiding assets during divorce can lead to:

• An unfair settlement
• Lost access to property or support you’re entitled to
• Court sanctions or even contempt rulings
• Reopening of settled agreements if fraud is discovered later

At The Goodman Law Firm, PLLC, we’ve seen how subtle and sophisticated hidden asset tactics can be—and we know how to spot them.

What Are Hidden Assets?

Hidden assets aren’t just financial oversights—they’re intentional efforts to deceive, manipulate, or withhold property from the equitable distribution process in a divorce. In North Carolina, this kind of behavior undermines the court’s ability to divide marital assets fairly—and it’s taken very seriously.

By definition, hidden assets include any income, property, or financial resource that a spouse intentionally conceals in order to avoid sharing it during divorce.

Common Examples of Hidden Assets:

• Unreported Income
  Tips, freelance work, side businesses, or commissions that aren’t disclosed on tax returns or pay stubs.
• Secret Bank Accounts
  Checking or savings accounts held in only one spouse’s name, sometimes opened just before separation.
• Undervalued Business Interests
  A spouse who owns a business may downplay its value, delay new contracts, or shift assets to make the company appear less profitable.
• Cryptocurrency Holdings
  Bitcoin, Ethereum, and other digital currencies can be easily hidden and difficult to trace without expert help.
• Gifts or “Loans” to Friends or Family
  Temporarily transferring money to a trusted third party, often under the guise of a loan or repayment, with the intent of reclaiming it after the divorce.
• Overpaying Taxes
  Making excessive payments to the IRS in the hope of receiving a refund after the divorce is finalized.

Who Is Most at Risk for Hidden Asset Issues?

Not every divorce involves hidden assets—but when they do show up, it’s often in situations where there’s financial imbalance, complexity, or a lack of transparency.

If you fall into one of the following categories, you may be at a higher risk of facing hidden asset issues in your divorce—and it’s crucial to be proactive.

High-Net-Worth Divorces

The more wealth and complexity involved, the more room there is for deception. If your marital estate includes:

• Investment portfolios
• Multiple real estate holdings
• Private or family-owned businesses
• Offshore accounts or international assets

…there’s a greater chance that one party may try to “lose” or minimize certain assets in the property division process.

One Spouse in Control of Finances

If your spouse was the one managing the:

• Budget
• Bank accounts
• Tax filings
• Investment decisions

...and you weren’t involved in the day-to-day financial details, you could be at risk. In these cases, the controlling spouse may assume you won’t know what’s missing—or how to find it.

Cash-Heavy or Self-Employed Spouses

Hidden income is much easier to mask when a spouse works in:

• The service industry (restaurants, salons, tipping jobs)
• Gig or freelance work
• Side businesses or under-the-table services
• A closely held or family-run company

These income streams may not show up on pay stubs or tax returns unless properly investigated. Business owners may also delay invoicing or shift expenses to obscure profits.

Common Warning Signs of Hidden Assets

If your gut tells you something isn’t right with your spouse’s finances during divorce—you’re probably right. Hidden assets often leave behind subtle clues, and the sooner you recognize them, the better chance you have of protecting what’s yours.

Sudden Drop in Income Without Explanation

If your spouse’s income suddenly takes a dive right before or during the divorce—but their lifestyle hasn’t changed—that’s a sign they may be underreporting earnings or deferring bonuses, commissions, or business revenue.

Unusual Bank or Credit Card Activity

Watch for:

• Large withdrawals or frequent cash advances
• Transfers to unknown accounts
• New credit cards or bank accounts you didn’t know about

These may be attempts to move money off the radar or build up “emergency” funds before separation.

Missing Tax Returns or Financial Documents

If tax returns, W-2s, or investment statements suddenly go missing—or your spouse refuses to provide them—it’s a strong sign they’re hiding something. Full disclosure is required during divorce in North Carolina, and withholding documents is a major red flag.

Overpayments to the IRS

Some spouses intentionally overpay taxes or estimate excessive quarterly payments to the IRS. Why? Because they plan to claim a refund after the divorce is finalized—keeping the money for themselves.

Suspicious “Debts” to Family or Friends

Watch out for claims like, “I owed my brother $10,000, so I paid him back.” These transactions may be staged, with the intent to retrieve the money later. Fake debts are a common way to temporarily move assets out of the marital estate.

Undervalued Business or Property

If your spouse owns a business and is suddenly claiming it's worth less than ever—or delaying contracts or downplaying income—that may be a strategy to lower its value for equitable distribution. An independent business valuation may be necessary.

Cryptocurrency or Digital Asset Purchases

Cryptocurrency can be easily bought and hidden. If your spouse is tech-savvy or has made past comments about Bitcoin, Ethereum, or NFTs, this could be a potential hiding place for funds. Tracing crypto requires specific financial expertise.

Locked-Down or Restricted Access to Shared Accounts

If you suddenly find yourself cut off from joint bank accounts, unable to log into financial portals, or being told you “don’t need to see that”—take note. Financial secrecy is one of the first warning signs of hidden asset activity.

Tools to Uncover Hidden Assets in North Carolina

When it comes to hidden assets, suspicion isn’t enough. You need legal tools and strategic investigation to shine a light on what's being concealed. Fortunately, North Carolina law offers several ways to compel disclosure, verify financial information, and protect your interests during divorce.

Financial Discovery

North Carolina divorce cases require both spouses to complete mandatory financial disclosures, which include detailed affidavits of:

• Income
• Assets
• Debts
• Expenses

Your attorney can also issue interrogatories (written questions) and document requests that your spouse must answer under oath. These tools help fill in gaps, verify accuracy, and identify inconsistencies.

Subpoenas

If your spouse isn’t being transparent, we don’t just take their word for it—we go to the source.

Your attorney can issue subpoenas to:

• Banks
• Employers
• Investment firms
• Tax preparers
• Real estate agencies

Forensic Accountants

In complex or high-net-worth divorces, it often makes sense to bring in a forensic accountant. These financial experts are trained to:

• Trace hidden income or off-the-books cash flow
• Identify undervalued businesses or assets
• Analyze tax returns and financial statements for red flags
• Reconstruct financial timelines

Depositions Under Oath

Depositions require your spouse (or other relevant parties) to answer questions under oath in the presence of attorneys. These sworn testimonies can reveal contradictions, clarify intent, and put pressure on dishonest parties to come clean.

Court Orders and Penalties for Non-Compliance

If your spouse refuses to comply with financial discovery or deliberately hides information, the court can intervene. Judges have the authority to:

• Compel the release of documents
• Order financial experts
• Sanction or penalize a spouse for non-compliance
• Award hidden or undisclosed assets entirely to the innocent spouse

Don't Let Hidden Assets Undermine Your Future

Divorce is challenging enough without the added burden of financial deceit. When one spouse hides assets, it doesn’t just violate trust—it can significantly impact your long-term financial security.

North Carolina law is on your side. You have the right to full financial disclosure and a fair division of marital property. But to protect that right, you need to know what to look for—and who to trust to uncover the truth.

If you suspect your spouse isn’t being honest, trust your instincts—and take action.

You don’t get a second chance at a fair property division. The decisions you make now will shape your financial future for years to come. At The Goodman Law Firm, we’ll stand with you every step of the way—uncovering what’s hidden, advocating for what’s fair, and protecting what matters most.

Worried Your Spouse Might Be Hiding Money or Assets During Your Divorce?

📞 Call us today at (704) 502-6773 📍 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
📩 kg@goodmanlawnc.com 🌐 www.goodmanlawnc.com

‍