What Is Financial Fraud in Divorce?

December 11, 2023
Our Media Divorce Lawyers at Eckell Sparks Work With Clients Who Suspect Financial Fraud in Divorce

Financial fraud in divorce includes one spouse deliberately hiding or misrepresenting their assets for their benefit. The purpose is to avoid sharing those assets fairly in the divorce settlement. Some people do this because of entitlement, resentment, and wanting to leave the other ex with fewer financial resources.

Spouses who are involved in affairs or have bad habits like drinking, drugging, and gambling typically overspend and accumulate debt. If your accounts have significant withdrawals and your spouse avoids discussing the missing money, those problems could have led to decreased balances.

No matter the motivation, financial fraud in divorce is unethical. Recognizing the warning signs and steps that should be taken can help protect your assets.

How Can I Tell if My Spouse Is Committing Financial Fraud?

These are some of the common signs of financial fraud in a divorce:

  • Asking the other spouse to sign documents without letting them review them with a lawyer.
  • Constantly moving money around between accounts.
  • Hiding accounts and other credit cards.
  • Making a large number of cash transactions.
  • Misleading or lying about financial matters.
  • Not letting the other spouse access documents about shared financial accounts.

Any changes in their saving patterns and spending can be red flags for financial fraud. If your spouse knows finances, they might have invested in cryptocurrencies and transferred monies to hard-to-trace digital wallets. Offshore accounts are another possibility.

What Should I Do if I Think My Spouse Has Committed Financial Fraud?

Many times, spouses are not purposely trying to commit fraud. Still, conflicts exist about what constitutes a divorcing couple’s marital assets and how they should be divided.

Spouses and ex-spouses commit financial fraud and can face significant penalties. If you suspect yours is doing this, consult a divorce lawyer. They can try to obtain documents from your spouse’s lawyer during discovery. You may get access to the information about your spouse’s assets, whether or not you knew they existed.

Your lawyer may contact a forensic accountant who can carefully analyze the documents to look for financial fraud. The choice to work with one can be discussed with your lawyer.

Our Media Divorce Lawyers at Eckell Sparks Work With Clients Who Suspect Financial Fraud in Divorce

Unraveling a possible claim of financial fraud in divorce can take time, but with the right legal guidance, you can arrive at the best solution. For a confidential consultation, contact our Media divorce lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. Complete our online form or call 610-565-3701 for more information. Located in Media and West Chester, Pennsylvania, we serve clients in Delaware County, Chester County, and Montgomery County.