Hidden Assets in a California Divorce: What You Need to Know (2025)

Finding hidden assets in a California divorce can be one of the most complicated parts of dissolving your marriage. Although hiding assets is illegal and can result in serious penalties, that doesn’t stop some spouses from attempting to keep community property for themselves.

What Are Hidden Assets?

California’s hidden asset laws prohibit divorcing spouses from keeping information about financial assets secret. Hidden assets can be money, property, real estate, or anything else of worth that should be considered part of the marital community property.

Types of Hidden Assets

There are some types of hidden assets that are more common than others. They include:

• Secret bank accounts
• Stocks and investments
• Undisclosed real estate
• Vehicles
• Cryptocurrencies
• High-end art or antiques
• Income from secret revenue sources

The Consequences of Hiding Assets in California

While it’s true that people can purchase whatever they want with their money, hiding assets becomes a problem during a divorce because it constitutes an attempt to defraud the other spouse. People found to be hiding assets can also be charged with perjury and contempt of court, resulting in fines, jail time, or both.

In addition to facing jail time and steep fines, people hiding assets may also find that their property is subject to seizure. By attempting to hide assets from their spouses, they can lose them entirely during the divorce proceedings.

How to Find Hidden Assets

Finding hidden assets can be challenging. Spouses sometimes maintain secret bank accounts well before a divorce becomes imminent, and in order to find them, you’d have to know where they’re located and have the legal authority to request details about the accounts. Similarly, if your spouse has acquired a valuable piece of property in their name, you would need to know when and where the purchase was made and where that property is currently located.

Many people who attempt to hide assets don’t do so with the assumption that they will be caught. They often leave behind paper trails as a result, making large withdrawals in cash to open new accounts or to purchase vehicles or other valuable items. Some spouses make purchases on credit, assuming their partners will never discover them.

Hidden asset attorneys can help you uncover secret property by reviewing financial documents and, in complex cases, working with forensic accountants. Key documents they may review include:

• Bank and credit card statements
• Tax returns
• Real estate documents
• Travel history

Because hidden asset attorneys have worked similar cases in the past, they know all the tricks used to create secret accounts and purchase property without a spouse’s knowledge. Hiring an attorney is thus the easiest way to uncover hidden assets and ensure that you receive your fair share of the marital property when you get divorced.

Warning Signs Your Spouse Is Hiding Assets

It can be difficult to tell when a spouse is hiding assets during a divorce. Here are a few warning signs to keep an eye out for:

• Transferring funds
• Making large purchases
• Delaying the submission of financial disclosures
• Obvious omissions

Don’t just assume your spouse would not attempt to hide assets. A 2021 survey conducted by the National Endowment for Financial Education found that 43% of American adults admit to financial infidelity.

Failure to disclose community property is more common among wealthy Americans, and some residents of California have accrued a vast amount of wealth. The median income for one earner in California is $76,190, but in some cities, the median family income ranges as high as $204,946. People living in these high-net-worth areas should be especially careful about hidden property during divorces, as they can be more likely to encounter the problem.

FAQs

What Money Cannot Be Touched in a Divorce?

Money that cannot be touched in a divorce includes any wealth that is considered separate property. Separate property includes property accrued before the marriage, inheritances left to a single spouse, and gifts. To avoid subjecting these types of money to the 50/50 split that typically occurs in California divorces, make sure you avoid commingling them with community property.

Why Is Moving Out the Biggest Mistake in a Divorce?

Moving out is the biggest mistake in a divorce because it can negatively affect financial negotiations, create immediate financial strain, weaken your position in property disputes, and have an impact on child custody arrangements. In some cases, leaving home during a divorce can be seen as child abandonment, which can negatively affect your chances of receiving custody of your children.

How Can You Divide Assets in a Divorce Without a Lawyer?

You can divide assets in a divorce without a lawyer by coming up with a settlement agreement using a mediator or a self-help center. However, it’s not recommended. Most marriages have complex assets that are difficult to divide fairly using a 50/50 split, and even during relatively amicable divorces, spouses typically have their own interests in mind. You should have an experienced and certified family lawyer available to represent your interests.

How Can You Find Hidden Assets During a Divorce?

You can find hidden assets during a divorce by hiring a hidden asset discovery lawyer. Your lawyer will help you review financial documents, such as bank and tax records, and use the formal discovery process to subpoena documents. You may also need to search public records for undeclared assets. In complex cases, your lawyer might hire a forensic accountant to help track hidden money.

Hire an Asset Discovery Lawyer

If you are concerned that your spouse might be hiding assets to avoid a fair division during a divorce, you should seek help from a skilled asset discovery lawyer. Hidden assets in a California divorce can be difficult to track down and prove, and asset discovery cases can be quite complex. The seasoned team at the Law Offices of Rod Firoozye has the experience and knowledge to understand and apply asset discovery laws to your case. Contact us to schedule an initial consultation today.