How Hidden Assets Are Uncovered in a Divorce in Franklin

At Durak Law, we understand that divorce is not only an emotional process—it’s a financial one, too. One of the most crucial aspects of a divorce in Franklin, Tennessee is full financial disclosure, required by state law. Yet, it’s not uncommon for one spouse to try to hide assets, hoping to skew the settlement unfairly in their favor.

Concealing money, undervaluing property, or hiding investments can significantly affect outcomes related to property division, alimony, and child support. Fortunately, there are clear legal procedures and investigative tools that can uncover the truth. As experienced family law attorneys, our job is to uncover those assets and ensure our clients receive a fair and equitable settlement.

We’ll explain why some spouses hide assets, how Tennessee law addresses this behavior, and what tools and legal strategies our experienced Franklin divorce attorneys use to bring hidden financial details to light.

Why Spouses Hide Assets During Divorce in Franklin

When the stakes are high, some individuals choose deception over transparency. The primary motivation? Financial gain.

Common reasons spouses hide assets include:

  • To reduce the amount of property subject to division: Tennessee follows equitable distribution, which means marital property is divided fairly (though not always equally). By hiding assets, a spouse may try to keep more than their fair share.
  • To avoid paying alimony or child support: A lower reported income or fewer disclosed assets may influence support obligations.

Common Scenarios:

  • A spouse who owns a small business may underreport income, delay contracts, or claim business losses that don’t exist.
  • Money may be stashed in undisclosed bank accounts—domestically or offshore.
  • In some cases, a spouse might sell valuable items to friends or family members at suspiciously low prices, only to recover those items after the divorce in Franklin is finalized.

These tactics aren’t just unethical—they’re illegal.

Legal Obligation to Disclose Assets in Tennessee

Under Tennessee divorce law, both parties are required to disclose all financial information honestly and completely. This includes income, property, debts, investments, and any other relevant financial interests.

What the Law Says

Tennessee courts aim for equitable distribution under Tenn. Code Ann. § 36-4-121, which can only be achieved if all assets are disclosed (source). Each spouse must complete a sworn financial affidavit, a legal document outlining their income, expenses, debts, and assets.

If someone knowingly provides false information or omits key details during a divorce in Franklin, they could face:

  • Contempt of court
  • Fines
  • A less favorable settlement
  • Possible criminal charges for fraud or perjury

Red Flags That Suggest Hidden Assets

While every case is unique, there are warning signs that may indicate a spouse is hiding money or assets.

Common red flags include:

  • A sudden drop in income or exaggerated claims of financial hardship.
  • Missing financial statements or denial of access to joint accounts.
  • Large or frequent cash withdrawals without a clear explanation.
  • Unusual transfers of money or property to friends or family.
  • Changes in behavior around financial matters, such as secrecy or anger when questioned.

If you notice any of these signs, it’s essential to raise the issue with your attorney immediately. Delaying action can make uncovering the truth more difficult during your divorce in Franklin.

Tools and Methods for Uncovering Hidden Assets

At Durak Law, we use several legal tools and investigative techniques to uncover assets that a spouse may be trying to conceal. These tools are part of what’s called the discovery process—a formal way of collecting evidence during a divorce in Franklin.

Discovery Process

This includes:

  • Interrogatories: Written questions your spouse must answer under oath.
  • Requests for Production of Documents: Legal requests to see bank statements, tax returns, credit card bills, etc.
  • Depositions: Face-to-face questioning under oath, where inconsistent statements can reveal deception.

Forensic Accounting

Sometimes, we work with forensic accountants, experts trained to follow the money trail.

They examine:

  • Tax returns
  • Bank and credit card statements
  • Business records
  • Investment accounts

They look for discrepancies and patterns that don’t align with a spouse’s reported financial status. According to the Association of Certified Fraud Examiners, forensic accounting is crucial in uncovering hidden income and assets in a high-conflict divorce in Franklin.

Subpoenas

If a spouse refuses to provide documents or if we suspect they’re not telling the truth, we can issue subpoenas to banks, employers, or investment firms. These compel institutions to turn over financial records directly to us.

Digital Evidence

Hidden assets often leave a digital trail. We may examine:

  • Emails and text messages
  • Transactions in digital banking apps
  • Cryptocurrency accounts

In some cases, we even uncover hidden assets through social media posts—for example, photos showing luxury items or expensive vacations that don’t align with the claimed financial hardship.

Image is of a judge's gavel on a desk with scales of justice and a bookshelf of books in the background, concept of finding hidden assets during a divorce in Franklin

Role of a Divorce Attorney in Asset Investigation

A skilled divorce attorney doesn’t just fill out paperwork—we act as your legal investigator, advocate, and strategist.

At Durak Law, We:

  • Know where to look and what questions to ask.
  • Coordinate with financial experts to trace and value complex assets.
  • Ensure that all evidence is gathered legally and ethically, so it’s admissible in court.
  • Fight for your rights during negotiations and hearings to secure your fair share.

Having an experienced lawyer by your side during a divorce in Franklin means you’re not facing financial deceit alone.

Consequences of Hiding Assets

Attempting to hide assets in a divorce in Franklin, Tennessee can backfire badly.

Possible penalties include:

  • Sanctions: The court may fine the dishonest spouse or charge them with contempt.
  • Unequal distribution: Judges may award a larger share of assets to the honest spouse as compensation.
  • Criminal charges: In cases of serious fraud or perjury, the offending party could face criminal prosecution (source).

In short, hiding assets doesn’t just undermine the process of a divorce in Franklin—it’s a high-risk legal mistake.

Consult Experienced Franklin Divorce Lawyers To Uncover Hidden Assets

Divorce is challenging enough without having to worry about hidden assets. But the truth is, many spouses try to game the system for financial advantage. At Durak Law, we’re committed to helping our clients uncover the full financial picture so that they can move forward with clarity, confidence, and fairness.

If you suspect that your spouse may be concealing assets during your divorce in Franklin, don’t wait—the sooner you act, the stronger your case will be. Contact Durak Law in Franklin, TN today at (629) 210-0866 to schedule a consultation and protect what’s rightfully yours.