Divorce and Financial Secrets: Protecting Yourself from Hidden Liabilities

Divorce is already a lot. There’s stress, paperwork, and emotional whiplash. But finding out about hidden debts or surprise financial issues on top of that? That’s a different level of frustration.

Maybe your ex took out a loan behind your back. Or racked up thousands in credit card debt you didn’t sign off on. And now you’re staring at statements you’ve never seen before, wondering how it all went so sideways.

Here’s the truth: this happens more often than most people realize. And when it does, you need a team that knows how to dig into the fine print and make sure you’re not left paying for someone else’s mistakes.

Our commercial litigation attorneys at Horn Wright, LLP, take this seriously. We’ll help you sort through every account, every transaction, and every “oh yeah, I forgot to mention…” moment. If business ownership or hidden financial ties are involved, we can break it all down. 

We don’t miss the details, because those are the things that can change everything. And yes, we’ve been named one of the best law firms in America. But more importantly? We care about giving you answers. Real ones.

The Red Flags Most People Miss

You shouldn’t have to turn into a detective to protect your financial future. But sometimes, it feels like you have to.

If you're getting divorced and something about the finances feels off? Trust that instinct. Here’s what you want to keep an eye out for:

• Withdrawals that don’t add up. Big transfers? Money moving out of joint accounts with no explanation? That’s worth looking into.
• Your credit score dips without warning. That could be a new credit card or loan tied to your name or joint debt piling up fast. Debt.com found that almost 70% of couples say someone in the relationship hid debt. That’s a big number.
• Mail from banks or lenders you don’t recognize. If new statements are showing up, or things are getting forwarded or redirected, don’t brush it off.
• Access to accounts starts disappearing. “I changed the password” or “I’ll handle it” shouldn’t be the norm. If you’re being locked out of financial info, ask why.
• Conversations about money get vague fast. If your spouse suddenly can’t explain expenses or income, or changes the topic altogether, that’s not nothing.

Oh, and if there’s a small business or side hustle involved? Double-check everything. We've seen cases where someone hid debts tied to their company and passed them off as “normal business stuff.” 

In fact, some of those situations turned out to be tied to commercial lawsuit that was never disclosed. Bottom line? If something feels wrong, it probably is. The sooner you get answers, the sooner you can take back control.

Financial Disclosures Only Work If They’re Honest

New York law requires both spouses to file a Statement of Net Worth during divorce. It’s supposed to show all your assets, debts, income, and expenses.

Key word: supposed.

Because let’s be honest. People don’t always tell the full story. Here’s how you can make sure you’re not being kept in the dark:

• Match up the numbers with your tax returns. If your spouse reports $60K in income, but last year’s return shows $100K, something’s not adding up. 
• Look at the last three years of pay stubs and 1099s. Self-employed? Side gigs? That’s where people usually try to tuck things away.
• Ask about every property. Yes, even that old cabin in the Catskills. Real estate is often “forgotten” on purpose.
• Don’t skip retirement or investment accounts. 401(k)s, pensions, stock options - if any of it was earned during the marriage, it matters.
• Think digital too. Venmo, PayPal, crypto wallets, eBay income. They’re easy to overlook, but they can carry real value.

If there’s any hesitation or resistance when you ask about these things? That’s your cue to bring in someone who knows how to spot the gaps. We often work alongside a business dispute resolution lawyer when things start crossing into “something’s not right here” territory.

You deserve transparency. You deserve the truth. And as a legal team specializing in business dissolution and partnership breakups, we can help you get it.

Trying to Hide Assets? That Can Come Back to Bite Them

You’ve probably heard people say, “It’s just a small account,” or “I’ll move it back later.” That’s not harmless. It’s illegal.

In New York, you’re required to fully disclose your finances during a divorce. If someone lies on court documents or omits assets? That’s perjury under N.Y. Penal Law Section 210.05 and judges take it seriously.

Here’s what can happen if your spouse tries to hide money:

• The court may shift the settlement in your favor. If they lie, the judge can give you more of the marital property as a consequence.
• They may be ordered to pay your legal fees. And any costs related to tracking down what they tried to hide.
• They could face criminal penalties. Lying under oath isn’t just frowned upon. It’s a crime.
• And even after the divorce? The case can be reopened. If you find out later that something was hidden, the court can step back in and fix it.

We’ve worked with clients who uncovered breach of contract claims and hidden accounts linked to side businesses. Things their ex just didn’t feel like sharing during the process.

Hiding money almost always ends up being more trouble than it’s worth. Especially when the court finds out.

What To Do When Something Doesn’t Feel Right

Most people know when something’s off. You might not be able to explain it yet, but it’s there. That feeling in your gut.

Here’s what to do when that happens:

1. Start writing everything down. Dates, weird bank activity, missing mail - whatever stands out. Screenshots help too.
2. Run your credit report. Go to AnnualCreditReport.com and see what’s tied to your name.
3. Bring in a forensic accountant if things seem complex. These professionals trace money through businesses, hidden accounts, and even digital platforms. They’re especially useful when one spouse owns a business or earns income from multiple sources. 
4. Loop in your attorney early. Don’t wait for things to get worse. A lawyer can file motions, get court orders, and freeze accounts if needed.
5. Ask the court for protections. You can request temporary financial orders to stop your spouse from moving or spending money while the divorce is pending.

If you’re splitting a business or untangling investment partnerships, we’ll often team up with a partnership dispute attorney to get a full financial picture. Whatever it takes to get you what’s fair.

You Deserve Answers, Not More Surprises

When your life’s being divided on paper, every dollar counts. And every answer matters.

Our commercial litigation lawyers at Horn Wright, LLP, help people across New York protect what’s theirs. If someone’s hiding money, misreporting assets, or just trying to be sneaky with finances, we’ll find out. We’ll work with professionals who know how to follow the money trail.

If you're ready to move forward, contact our office to schedule your complimentary case review. Let our trusted law firm handle the numbers, so you can face what comes next with clarity and confidence.