In high-asset divorces, transparency is critical to achieving an equitable distribution of property under North Carolina law. Because the state follows an equitable distribution model—not an automatic 50/50 division—concealed income, undisclosed investments or underreported business profits can significantly skew outcomes. When one spouse attempts to hide assets, the court cannot make a fair allocation of marital property.
Common red flags to watch for
Certain behaviors may indicate hidden assets. These include:
- Unexplained withdrawals or transfers
- Sudden debts to friends or family members
- Overpayments to the IRS or creditors (with the intent to recover later)
- Devaluation of a business or deferral of bonuses and commissions
- Creation of trusts, offshore accounts or shell corporations
In North Carolina, the court requires spouses to complete a financial affidavit as part of the divorce process. Inconsistencies in that documentation often serve as the first clue.
How forensic experts uncover the truth
When suspicion arises, attorneys may engage forensic accountants or valuation professionals to examine bank statements, tax returns, real estate records and business ledgers. These specialists look for discrepancies between reported income and lifestyle, hidden cash flow in closely held companies or asset transfers made under a third party’s name.
They may also review electronic communication, corporate filings and public registries to follow the money trail. In court, forensic evidence can support a motion for sanctions or compel full disclosure through the use of subpoenas (formal legal orders) or depositions, a sworn, out-of-court testimony where you answer questions while under oath.
North Carolina’s legal tools to ensure fairness
Courts in North Carolina take hidden assets seriously. If concealment is proven, a judge may reclassify certain assets as marital property, impose monetary penalties or award a disproportionate share to the non-offending spouse. Intentional nondisclosure can also damage credibility, which may influence rulings on alimony or attorney’s fees.
Protecting your financial interests
High-asset divorces demand proactive strategy and skilled legal support. If you think that your spouse might be hiding some assets from you, consider consulting a knowledgeable family law attorney. Having the right tools and guidance can help you uncover the whole financial picture and protect your fair share.