Divorce and Hidden Assets

Divorcing couples go through a process of dividing marital assets and debts, including real estate, financial accounts, and more. If one partner tries to hide certain assets, it can cause significant legal problems for them and financial hardship for you.  

A first step in uncovering hidden assets is when the finances of your marriage do not add up.  Your current financial situation should make sense based on your joint income over the last several years. So, if over the last 10 years, you and your spouse have earned about $500,000 per year with living expenses of $10,000 per month, and you have zero investment and savings, we would ask where the money is. 

If you think you should have significant savings and do not, then you might want to start tracing when the money was transferred and to where.  

Uncovering Hidden Finances Starts With Looking in the Right Places

It’s expected that you’ll divide your assets and be fully transparent with your spouse amid the process. However, some sneaky spouses try to conceal assets and avoid a full financial disclosure. They might:

  • Temporarily transfer funds to loved ones
  • Create offshore bank accounts
  • Alter information on tax returns
  • Adjust business records
  • Purchase property under a different name

If you believe your ex is hiding assets from you via property division fraud or offshore accounts, divorce lawyers can step in. 

What Are the Consequences of Concealing Marital Assets?

One may think that concealing assets is a surefire way to dissolve a marriage with the upper hand. However, harsh penalties exist for those who try to cheat the system. The consequences of hiding assets during a divorce include:

  • Fines 
  • Criminal sanctions for fraud
  • Awarding the other spouse more assets in the proceedings

A paper trail always exists when it comes to real estate, investment accounts, and tax returns. If you want to uncover concealed assets, we can bring a professional and/or forensic accountant onto the team. Divorce proceedings can turn messy and expensive the longer they drag out, so let a trusted accountant scope out any concealed money or investments. 

Cryptocurrency Raises Concerns 

If your spouse invested in Bitcoin or other cryptocurrencies during your marriage, but now claims they have no investments during a divorce, are they telling the truth or trying to limit the amount of money you receive in your settlement?

Suspicious behavior calls for a thorough search of these accounts and questioning from legal counsel. 

Monitor Hidden Debt and Act Accordingly

Hiding assets from a spouse presents problems, but hidden debt creates other financial hurdles for divorcing individuals. Never dissolve your marriage without confirming the unresolved debt in your name. 

Request a credit report to see what outstanding debts are in your name. We can review the report to ensure you are familiar with each debt and then work with you to investigate others that you don’t think are yours. For example, if you’re responsible for a car loan that is not yours, we will need to do some investigating to clear the loan from your account.  

Hire an Experienced Divorce Attorney To Guide You Through This Complex Process

Going through a straightforward divorce can be an emotional time, but dealing with divorce and hidden assets presents greater challenges. Turn to Karen Ann Ulmer, P.C., for assistance. Our knowledgeable attorneys will help you navigate the process and dissolve your marriage with a fair settlement. 

Call (866) 261-9529 to request a consultation today.

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What To Know About Tax Filing Before, During, and After Your Divorce

How do I file my taxes if I am getting a divorce?  

Going through a divorce can bring tax implications that you may not be aware of until long after you finalize the proceedings. What should you expect when it comes time for your first tax filing after your divorce? Our team will review the details based on your specific divorce. Here are some details to help answer your questions.  

First and foremost, you file your taxes based on your status as of December 31st of the previous year. If you were officially divorced by December 31st of the previous year, then you are going to file on your own. If you were not divorced by the end of the year, then you have the option to file together or file separately. Each has advantages and disadvantages, which an accountant can review with you at tax time.  

Understand the Long-Term Implications That Await

Dissolving your marriage means you’ll (more than likely) no longer share marital assets with your spouse and, instead, become the sole owner of various investments or properties. When you report your income to the IRS as an unmarried individual, the taxes owed can look quite different from when you were married. 

Say you plan to stay in the home you shared with your spouse, which calls for them to receive more in retirement investments, so your division of assets remains equitable. You will be responsible for any capital gains tax when you eventually sell the home. Consult an accountant to learn about divorce and tax deductions that come with the assets you receive following a marriage. 

Navigating Filing Status Changes Amid a Divorce

Your first tax filing after your divorce may not bring immediate changes, depending on the timing. 

Remember, if you finalize your divorce in January of 2026, the IRS will recognize you as married for the 2025 tax year because your divorce was not finalized before the December 31 deadline. In this case, you could file your 2025 taxes jointly or as married filing separately.

Changes could be afoot when you have to file as a single individual. For example, you could claim head of household status if you meet the following criteria:

  • Being either single, divorced, or legally separated on the last day of the tax year
  • Paying more than half of a household’s necessary expenses throughout the year
  • Living with a dependent for at least six months

Are alimony and child support taxable income?  

The simple answer here is usually not. However, if you were divorced long ago, you may be required to still count alimony as income for tax purposes.  

Become Familiar With Alimony Tax Rules and Child Tax Credits

If you have young children, your divorce decree will name a custodial parent. The custodial parent is the person who has the children in their care for the majority of the year. This person can claim child tax credits. 

Our Divorce Attorneys Are on Your Side – Contact Us Today

Don’t approach a tax filing after your divorce without proper knowledge. Team up with Karen Ann Ulmer, P.C., and let our resourceful attorneys prepare you for all aspects of a divorce. We have years of experience practicing family law and are ready to see you through this transition. 

Call (866) 261-9529 or use our online booking tool to schedule a free legal consultation.

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Post-Divorce Budget

Transitioning from a dual-income household to a single-income household after a divorce calls for accurate and detailed expense tracking. Figuring out your post-divorce budget is critical for living within your means and avoiding financial hardships. 

Our team will work with you on your post-divorce budget. This budget will serve as a guidepost for when we negotiate alimony, child support, and the division of assets and debts.  

How do you budget for your post-divorce life on a single income? Take these steps so you do not struggle financially.   

Gather Accurate Information Regarding Monthly Income and Expenses

As we prepare a strategy to negotiate, we will ask for ALL of the details of your anticipated post-divorce budget, including a detailed breakdown of your monthly income and expenses. We will use pay stubs, investment income, and any other incoming cash you receive. If you do not regularly track your expenses, then we will ask you to track receipts and go through credit card statements. Typical expenses can include:  

  • Rent or mortgage payments
  • Utility costs
  • Groceries
  • Transportation
  • Existing loan payments
  • Personal care
  • Entertainment

Sometimes we talk about adjusting lifestyle expenses so you live within your means, possibly just in the short term, so you can reach your post-divorce financial goals. 

Consider Your Children’s Expenses

When you share children with your ex, the cost of caring for them becomes vital for determining alimony and budgeting properly. You and your spouse will both share financial responsibility for your children based on the number of overnights the children stay with each of you. Think about how much you spend on your children each month. These costs may include:

  • Daycare programs
  • School lunch plans
  • Extracurricular activities and hobbies
  • Tutoring programs
  • Medical care 

Your lawyer can negotiate a settlement based on your custody agreement so your children are cared for in a way that is financially reasonable for both parents. 

Plan for Educational Costs

No matter how old they are at the time of your divorce, it’s important to include college tuition agreements for your kids in your settlement. Figuring out a plan for your child’s education in advance can save you and your co-parent financial headaches down the road and ultimately set your child up for a successful future. 

It’s not just children’s educational costs that come into play. Do you anticipate taking some courses or earning a degree so you can bring new skills into the workforce? Research the cost of advancing your education and account for this in your post-divorce budget. 

Set Aside Emergency Funds

An important part of financial planning after divorce is preparing for the unexpected. What would you do if your car suddenly broke down and you had to pay thousands for a new one? Would an urgent medical crisis put you into debt?

Establish an emergency savings account and commit to putting a little bit in it each month. This account will build over time, so you eventually accrue enough to cover six months of your living expenses. Having this safety net will give you peace of mind should you lose your job or face some other financial hardship.

Team Up With a Trusted Divorce Attorney

Creating a post-divorce budget will help you move on from your marriage and be financially independent. Approach this process with the help of Karen Ann Ulmer, P.C. Contact our family law firm at (866) 261-9529 or submit our online form to schedule a consultation.

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Divorce and Your Credit Score

Simply ending your Bucks County marriage cannot cause your credit score to drop. The actions you and your spouse take before, during, and after your divorce can cause credit problems in the short term and long into the future. You can mitigate credit damage by reassessing your financial obligations during proceedings, ensuring bills are paid, and separating your financials as soon as possible.  

Below, we discuss the connection between divorce and your credit score, as well as tips to limit the fallout.  

Be Strategic About Paying Bills

Your credit score after divorce can remain the same as during your marriage as long as you pay your bills on time. Financial separation is crucial during this period, so you (and you alone) are responsible for your bills.  

Think about the bills in your name and who pays for them. For example, paying off your credit card each month will remain your responsibility if the account belongs to you alone. Joint assets can create problems for divorcing spouses, especially if they default on a loan.

Say you and your spouse share a home, and both of your names appear on the deed and mortgage. If you move out and don’t pay your share of the mortgage, your credit can suffer because your name is still attached to the loan. 

The connection between divorce and lower credit scores often has to do with not paying bills. Whether this is due to stress or lifestyle changes, your credit score might take a hit. 

Don’t Take On New Debt

Lawyers often guide couples through the complex process of divorce and debt division. Legal professionals strongly advise against taking on new debt, especially if the asset doesn’t belong to you. This includes:

  • Mortgages
  • Car payments
  • Student loans
  • Credit card debt

You could be on the hook for payments that you agreed to during your marriage, especially if you signed as a primary or co-signer for your spouse. For example, if a husband has student loan debt and the wife was a co-signer on that loan, she could become liable for future payments despite a divorce. If she stops paying amid a separation and the husband is not able to pay, then the wife’s credit score could be impacted.

Avoid Joint Account Liability

Perhaps the biggest credit impact of divorce boils down to keeping joint accounts when you’re no longer legally married. Start over by closing these accounts and only using bank or credit card accounts solely in your name. I recommend this step because it helps alleviate certain financial obligations tied to your ex once you officially end the marriage. 

Changing your existing account numbers in case your former spouse still has access to them is a good idea. For example, your computer may save one of your credit cards and allow your ex to make purchases on your dime. Changing your account information prevents this, helping you achieve an independent financial future. 

Prepare for Your Future With a Professional Divorce Attorney

Mitigate the impact of divorce and your credit score with the help of Karen Ann Ulmer, P.C. Our knowledgeable family lawyers can guide you through proceedings and assist with child custody agreements, alimony, and more. 

Call (866) 261-9529 or submit our online booking form to request a consultation – we’re standing by and ready to help.

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