Uncovering Hidden Assets in a Georgia Divorce: A Strategic Guide
Divorce proceedings in Georgia require both parties to provide a full and honest disclosure of all marital and separate property. But not everyone plays fair. It is not uncommon for a spouse, especially the higher-earning or more financially savvy one, to attempt to conceal assets in order to skew the division of marital property. When this happens, you need to understand the tools available to locate hidden assets and trace the movement of money through financial accounts, businesses, and third-party transfers.
At Resurgens Legal Counsel, we know that uncovering the truth is key to protecting our clients' financial futures. Here’s how it’s done.
Red Flags That May Indicate Hidden Assets
Before jumping into legal tools, it’s important to recognize the warning signs of asset concealment. These include:
Large or frequent cash withdrawals
Sudden “repayment” of personal loans to friends or family
Opening new financial accounts unknown to the other spouse
Delaying bonuses or income payments
Unusual business transactions (e.g., increased expenses or false invoices)
Cryptocurrency investments or online-only financial instruments
These red flags often signal that a spouse may be attempting to manipulate the financial picture—sometimes right under your nose.
Using Discovery to Locate and Trace Assets
Discovery is the formal legal process by which each side in a Georgia divorce case can request and obtain information from the other side. It's one of the most powerful tools we have to investigate and expose hidden assets.
Here’s how we use different forms of discovery to follow the money:
1. Interrogatories
These are written questions your spouse must answer under oath. Strategic questions may include:
A list of all bank, brokerage, retirement, or crypto accounts held in the last five years
Details about any cash transactions over a certain dollar threshold
Disclosures of any interest in businesses, trusts, or partnerships
Identification of all personal property valued over a certain amount
The answers can then be compared against other documents and third-party information to spot inconsistencies or omissions.
2. Requests for Production of Documents
These are formal requests for specific documents. The goal is to obtain:
Bank statements (personal and business) showing inflows and outflows of money
Credit card statements that may reflect spending patterns or large purchases
Tax returns (including all schedules, W-2s, and 1099s)
Loan applications which often disclose assets not otherwise reported
Pay stubs and employment contracts to check for deferred compensation
Business records such as profit/loss statements, ledgers, and shareholder distributions
Using these records, we can trace the flow of funds. For example, regular withdrawals from a business account to an unknown entity might suggest the spouse is funneling money into a hidden account. Or a tax return might disclose interest or dividends from an investment account not disclosed elsewhere.
3. Subpoenas to Financial Institutions
When a spouse is suspected of withholding information or producing incomplete records, we issue subpoenas directly to third parties such as:
Banks and credit unions
Investment firms
Employers and payroll companies
Cryptocurrency exchanges
Venmo, PayPal, and other financial apps
This bypasses the spouse’s control and gives us a clear, independent look at their financial footprint.
4. Depositions
In a deposition, the spouse (or other witnesses, like accountants or business partners) is questioned under oath by your attorney. Depositions are particularly effective when:
Documents raise suspicious patterns that need explaining
There is a discrepancy between disclosures and actual account activity
The spouse has complex business holdings or investments
A deposition can pin down inconsistent statements and lead to follow-up discovery requests or court intervention.
How We Trace the Flow of Assets
Once we’ve collected bank statements, transaction records, and other financial documents, we conduct a financial analysis (often with the assistance of a forensic accountant) to:
Track deposits and withdrawals across different accounts
Identify patterns of cash transfers to third parties or other accounts
Cross-check asset disclosures against real property records, vehicle registrations, or business interests
Calculate discrepancies between reported income and observed lifestyle (often called a lifestyle analysis)
For example, if your spouse earns $80,000 per year but is making $6,000 per month in mortgage, tuition, and luxury purchases, we may investigate whether undeclared income is being funneled through a business or offshore account.
Legal Consequences of Hiding Assets in Georgia
Under Georgia law, attempting to hide assets during divorce can result in serious consequences:
Contempt of court, potentially leading to sanctions or jail time
An unequal distribution of assets in favor of the innocent spouse
An award of attorney’s fees
Referral for perjury or fraud prosecution in extreme cases
Georgia courts have little tolerance for dishonest behavior in equitable division proceedings. In some cases, the court may award the entire value of the hidden asset to the innocent spouse.
What You Can Do Right Now
If you suspect your spouse is hiding money or undervaluing assets, here are the first steps:
Act quickly. The sooner discovery begins, the harder it is for the other side to cover their tracks.
Secure financial documents. Make copies of everything you can access: bank statements, credit card bills, tax returns, business records, etc.
Retain an attorney experienced in asset tracing. This is not a DIY issue. At Resurgens Legal Counsel, we know how to litigate discovery issues and work with financial experts to build a strong case.
At Resurgens Legal Counsel, LLC, we represent clients throughout Georgia in divorce cases involving complex financial issues, hidden assets, and high-conflict litigation. If you suspect your spouse is hiding something, don’t wait to act. Contact us today for a confidential strategy session.