Dividing property can become harder when one spouse leaves assets out of the divorce process. A hidden asset could be a bank account, business interest, investment account or other property that was not reported. In Pennsylvania, finding out whether an asset is part of the marital estate can affect how the court values and divides the property.
If you think your spouse has not listed all their property, finding missing assets may help the court get a more complete picture of the marital estate.
What counts as a hidden asset?
A hidden asset is property or money that a spouse does not report during the separation process. For example, a spouse may leave a savings account off a property list, move money to another account or leave out an ownership interest in a business.
Pennsylvania court rules require people seeking equitable distribution to provide a list of property, debts and estimated values. The list must also identify property that a spouse says is not marital property. Whether an asset is marital, nonmarital or partly marital depends on factors such as when it was acquired and how Pennsylvania law applies.
Some warning signs may include:
- Bank accounts that do not appear in financial records
- Unexplained transfers between accounts
- Business interests missing from the inventory
- Property purchases that do not match reported income
- Large changes in account balances before separation
Reviewing financial records for these inconsistencies can help identify property that may need further investigation.
What happens if an asset stays hidden?
Not reporting required information can have legal consequences after a divorce. Under Section 3505(d) of the Pennsylvania Divorce Code, a spouse may ask the court to create a constructive trust if required information was not disclosed and an asset worth at least $1,000 was left out of the final property division.
A constructive trust does not automatically give the hidden asset to the other spouse. Instead, the law allows the affected spouse to ask the court to create a trust for the benefit of the parties and any minor or dependent children. Legal assistance can help with reviewing financial records and seeking information about assets that may affect property division.
When something does not add up
A missing asset may still affect property division even if it was not included on the first property list. Reviewing financial records, money transfers and ownership papers can help show what property exists and how Pennsylvania law may treat it.