Hidden Assets in Divorce: How Forensic Accountants Find Money Your Spouse Doesn't Want You to Know About

What a Forensic Accountant Revealed About Finding Hidden Money, Red Flags to Watch For, and When It's Worth Hiring One

Finding hidden assets can be a full-time job.

You have a suspicion. Something doesn't add up. Your spouse controls all the finances, and you're starting to wonder if there's money you don't know about. Maybe it's the lifestyle that doesn't match the reported income. Maybe it's the sudden "business losses" while you're still living in a beautiful home and taking expensive vacations. Maybe it's just a gut feeling that something is off.

More often than not, you're probably right.

I recently sat down with forensic accountant Jennica Moore for an upcoming episode of The Divorce Planner Podcast to talk about exactly this. In the upcoming episode we cover how people hide assets during divorce, what red flags to look for, and when it makes sense to bring in a forensic accountant to help you find what's being concealed.

If you've ever wondered "What is a forensic accountant and do I need one?"—this post is for you.

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What Is a Forensic Accountant and What Do They Do in Divorce?

Let's start with the basics. A forensic accountant is an accountant with specialized investigative skills. They combine financial expertise with detective work. According to the New Jersey CPA Society, forensic accountants use their expertise in accounting, auditing, and investigation to examine financial records and provide clarity in legal settings, especially in divorce cases, to ensure a fair and equitable division of assets.

As Jennica put it, "You are more of an investigator and you put puzzles together."

In a divorce, forensic accountants do several critical things: they uncover hidden assets and income that one spouse may be concealing, value businesses, real estate, and complex assets accurately, trace the origin of assets to determine what's marital property versus separate property, analyze income and expenses to determine true earning capacity, provide expert testimony in court if the case goes to trial, and investigate financial misconduct, fraud, or dissipation of marital assets.

Forensic Accountants Aren't Just for High Net-Worth Divorces

One of the most important things -- you don't have to be wealthy to benefit from a forensic accountant.

"It doesn't have to be a high net worth divorce. Our services are just like any other type of professional services. They're not inexpensive, but you want to be—I always tell clients—you don't want to spend dollars chasing nickels."

She gave a great example: If you had a retirement account before marriage and you were married for 10 years, a forensic accountant can do a "tracing" to separate what was yours before marriage (separate property) from what accumulated during the marriage (marital property).

"Instead of just splitting it 50-50, you may hire us to come in to do a tracing because you had that prior to marriage and it may be split 75-25, 225 in your favor. You may maintain your separate property, so it may be worth it."

That's strategic. That's the difference between walking away with what's legally yours versus splitting everything down the middle because you didn't know better.

Red Flags To Watch Out For: When to Suspect Hidden Assets

Jennica and I talked extensively about what to watch for. Here are the red flags she sees most often:

• Lifestyle doesn't match reported income. If your spouse is driving luxury cars, taking expensive trips, and living large while claiming business losses or low income, something's off.

• Sudden changes in financial behavior. Large cash withdrawals, new accounts you don't recognize, transfers to unfamiliar account numbers.

• You're locked out of financial information. You don't have passwords to accounts, your spouse gets defensive when you ask about money, or you need permission to make basic purchases.

• Business owners with cash-based operations. As Jennica noted, "I've seen couples with cash based businesses where they don't put the money into the account. If it doesn't go into an account, there's nothing that we can do."

• Missing documents. According to research from law firm Iwanyshyn & Associates, missing financial documents or incomplete records can signal hidden assets, as important paperwork may suddenly become unavailable or gaps in financial records might indicate deliberate concealment.

• Complex financial structures. Trusts, offshore accounts, shell companies—if your financial picture seems overly complicated, it may warrant investigation.

Always trust your gut. If it seems like it's off, a lot of times it is.

How Forensic Accountants Actually Find Hidden Money

So how do they do it? Jennica walked through the process:

"Start with your bank statements and look at the transfers in and out. Look for account numbers that you don't recognize. The bank statements tell the whole story. If it lands somewhere, we can trace it, we can find it."

Forensic accountants use several key documents. Tax returns are critical: "If you filed jointly, get a copy of your tax return. That really tells a lot. It tells if you've got interest coming in, which means that there's an account somewhere where you're earning interest on it. If you've got dividends, if you've got capital gains."

They also use bank statements to track transfers between accounts, unusual withdrawals, and patterns of spending. Credit reports reveal accounts you didn't know existed. Business financial statements matter for self-employed spouses or business owners. Property searches find real estate holdings that weren't disclosed. And lifestyle analysis compares reported income with actual spending to identify discrepancies.

According to a 2025 article in the New Jersey CPA Society, many CPAs use four main documents: financial accounts, tax returns, tax information from the IRS and credit reports.

Creative Ways People Hide Assets During Divorce

Unfortunately, sometimes people are sneaky and withold or hide assets. Jennica shared some of the tactics she's seen—and they're more common than you think:

Cryptocurrency: "People will put money into cryptocurrency thinking it's hard to trace, but it's not."

Multiple bank accounts: Moving money between accounts, including accounts in family members' names.

Overpaying taxes: "They're expecting to get a divorce and they'll get a refund for that in a couple of years."

Prepaying expenses: "Paying ahead on any type of liability that they're going to get a refund for, like double paying bills and then later asking for refund."

Giving assets to family members: Transferring property or money to relatives "temporarily."

Cash withdrawals and safe deposit boxes: "Taking out cash withdrawals, buying gold bars and putting it in safe deposit boxes."

Secret accounts: Jennica shared a story about a client who had a secret account with a million dollars that even she didn't initially disclose. "At that time, I was kind of in a pickle because I was preparing the marital balance sheet and I had to put that on there now that I know about it."

Undervaluing business assets: Business owners may inflate expenses, create fictitious debts, or defer income to reduce the apparent value of their business interests.

According to California law firm Provinziano & Associates, business owners sometimes manipulate company finances during a divorce by holding off on sending invoices to clients, putting off signing profitable deals, or creating fake expenses to make their business look less valuable during divorce proceedings—all to avoid sharing what the company is really worth.

The Cost of Hiring a Forensic Accountant (And Who Pays)

This is the question everyone asks. Jennica was clear: forensic accounting isn't cheap, but it can save you far more than it costs.

According to multiple sources, hourly rates typically range from $250 to $600 per hour, depending on the accountant's experience and your location. Initial retainers usually start at $3,000 to $5,000. Total costs for a divorce case can range from a few thousand dollars to $30,000 or more for complex cases.

Who pays? Generally, the party who hires the forensic accountant pays their fees. However, in some cases, the court may order fees to be shared between both spouses, especially if the forensic accountant is necessary to ensure a fair division of assets. If one spouse has significantly more financial resources, the court may require them to cover the cost.

Jennica's approach: "We offer free case consultations. We never take a case where we don't feel like it would be worth it. I turn people down all the time and say, listen, I just don't think it would be worth the money."

When It's Worth Hiring a Forensic Accountant

Not every divorce needs a forensic accountant. Here's when it makes sense:

Your spouse owns a business. Business valuation is complex, and business owners have multiple opportunities to hide income or undervalue assets.

You suspect hidden assets. If your gut tells you something's off, at bare minimum, book a consultation.

There are significant retirement accounts. Especially if one or both of you had retirement accounts before marriage that need tracing.

You've been locked out of financial information. If your spouse controls everything and you have no access to accounts or documents.

Complex financial structures. Trusts, multiple properties, investment accounts, offshore holdings.

Cash-based businesses. Where income can easily be hidden.

Significant assets to divide. The more there is at stake, the more valuable expert analysis becomes.

If you're navigating a financially-complex divorce, you'll probably need an additional specialist.

What Happens If Someone Gets Caught Hiding Assets?

Jennica was clear about this: "They're required to disclose their assets and every case is different. Every judge is different. And that's why it's really important in my opinion to have a good attorney who will seek legal remedies wherever they're available."

The consequences can be serious. Courts can impose financial penalties. Judges may award the other spouse 50% of the undisclosed asset's value, plus attorney's fees and court costs. The hiding spouse may lose credibility with the judge, affecting other aspects of the settlement. In some cases, hiding assets can be considered perjury.

As I pointed out on the podcast: "If you know at the top what your responsible for sharing and you don't honor it, that's not going be a good sign for an attorney or judge during a divorce."

California Family Code § 1101(g) specifically states that if a spouse hides assets, the court may award the other spouse 50% of the undisclosed asset's value, plus attorney's fees and court costs.

Important: Forensic Accountants Are Neutral Third Parties

A forensic accountant is a neutral third party. They're not working for you or your spouse. They're working on behalf of the divorce. So they have to be transparent and have no bias.

The role of a forensic accountant is not to be an advocate for the client. They

re an advocate for their financial opinion. The attorney is an advocate for the client. So a forensic accountant is hired by the attorney for client-attorney privilege. That way if something is discovered that isn't favorable to the client, the forensic accountants finding cannot be withheld or manipulated by the party in question.

This is similar to how a mediator works—they're neutral. They work on behalf of the divorce itself, not for one spouse or the other.

A Forensic Accountant's Top Three Mistakes People Make During Divorce

Here are the three biggest no-nos when working with a forensic accountant:

Not being completely honest with your forensic accountant. "That happens more often than not. Be 100% honest about your finances and what's happened."

Not being prepared. Gather your documents, track your suspicions, document everything.

Hiring a bulldog attorney when you should be collaborative. "Don't hire a bulldog attorney. Try to be more collaborative if possible. Mediations are great. We highly recommend them. We even attend those and help negotiate settlements."

What You Can Do Right Now

If you're reading this and thinking "I need to do something," here's where to start:

• Gather what you have access to. Bank statements, tax returns, pay stubs, investment account statements. If accounts are in your name, you can request statements directly from the bank.

• Pull your credit report. Go to AnnualCreditReport.com and get free reports from all three bureaus. Look for accounts you don't recognize.

• Document suspicious activity. Write down account numbers you don't recognize, large cash withdrawals, unusual transfers. Screenshot what you can.

• Track household expenses. Start keeping a record of what's actually being spent versus what's being reported as income.

• Request tax returns. If you filed jointly, you're entitled to copies. Request them from the IRS using Form 4506-T (it's free for transcripts).

• Schedule a free consultation. Many forensic accountants offer free initial consultations to assess whether it's worth proceeding.

• Talk to a divorce attorney. They can help you determine if hiring a forensic accountant makes sense for your situation.

As Jennica said: "If you have access to the accounts, if they're in your name, you can access them without any type of discovery request. You just go to the bank and request the statements or you can do it online."

The Bottom Line

Hidden assets are more common than most people think. Financial deception during divorce isn't just something that happens in movies or to other people—it happens in regular divorces to regular people every single day.

You don't have to be paranoid. But you also don't have to be naive.

If your gut is telling you something's off, listen to it. If the numbers don't make sense, there's probably a reason. If your spouse controls everything and you're in the dark about your own financial life, that's a problem that needs addressing.

Forensic accountants exist for exactly this reason. They find what's hidden. They value what's been undervalued. They trace what needs tracing. And they do it with expertise that levels the playing field.

As Jennica said at the end of our conversation: "Be honest, don't hide any assets, be transparent, and be prepared."

That applies whether you're the one preparing for divorce or the one who might be tempted to hide things. Because here's the truth: forensic accountants are really good at what they do. And getting caught hiding assets will cost you far more than being honest from the start.

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Sources:

Interview with Jennica Moore, Forensic Accountant (The Divorce Planner Podcast, 2026) New Jersey CPA Society, "The Role of Forensic Accounting in Divorce Proceedings," April 2025 Iwanyshyn & Associates, "Forensic Accounting in Divorce: How to Uncover Hidden Assets and Income," March 2025 Provinziano & Associates, "8 Ways Forensic Accountants Can Protect You in Divorce Cases," February 2026 Family Law Attorney Philadelphia, "Is a Forensic Accountant Worth It in a Divorce?," January 2023 California Family Code § 1101(g) Rethinking65, "When Does a Divorcing Client Need a Forensic Accountant?" by Kathy Costas, CDFA, January 2022