NEW YORK, NY – September 02, 2026 – Divorcing spouses in New York may face an uneven property division when one party conceals income or assets during the case. Manhattan property division attorney Richard Roman Shum of the Law Office of Richard Roman Shum, Esq. (https://www.romanshum.com/forensic-accounting-in-divorce/) is explaining how forensic accounting can help identify and document financial discrepancies before a case is finalized.

According to Manhattan property division attorney Richard Roman Shum, New York follows equitable distribution under Domestic Relations Law § 236, which requires courts to divide marital property fairly based on a complete and accurate financial picture. “When even one asset stays hidden, the entire division can tilt out of balance,” explains Shum. “The system only works if both spouses disclose everything.”

Manhattan property division attorney Richard Roman Shum notes that New York law requires both spouses in a contested matrimonial action to complete a sworn Statement of Net Worth, and that knowingly providing false information on that document may lead to sanctions, adverse rulings, or even contempt findings. Warning signs of concealment often include sudden secrecy about finances, unexplained cash withdrawals, or a lifestyle that does not match reported income, and these signs frequently prompt a closer financial review well before litigation reaches a courtroom.

Attorney Shum adds that a forensic accountant can review years of bank records, tax returns, and business filings to identify patterns that do not align with a spouse’s reported finances. “A lifestyle audit often reveals what financial documents alone cannot,” he notes. “When spending far exceeds reported income, that gap deserves a closer look.”

The firm regularly works with forensic accountants on Manhattan divorce cases involving privately held businesses, professional practices, and detailed investment holdings, where valuation and concealment risks tend to be highest. Shum explains that many engagements are structured in phases, allowing clients to control costs while still pursuing legitimate concerns.

For Manhattan and New York City clients with sizable or complicated marital estates, an early forensic review can clarify whether further investigation is warranted before settlement discussions move forward.

“Even a review that finds no concealment can support a more informed settlement decision,” Shum advises. “There is value either way.”

Shum points out that common red flags include sudden secrecy about passwords or statements, large unexplained cash withdrawals, vague repayments of undocumented loans to friends or relatives, and unexplained drops in reported business income. Cryptocurrency is not always as untraceable as spouses assume, since most transactions leave a permanent blockchain record that a forensic accountant can often follow back to the original bank or exchange account.

New York courts can respond firmly when concealment is proven, and Shum notes that remedies may include an unequal distribution or distributive award, contribution to the other spouse’s legal and accounting fees, monetary sanctions, and adverse inferences drawn from a spouse’s refusal to disclose records. In more serious situations involving a false sworn Statement of Net Worth, the court may also consider contempt findings or, in appropriate cases, refer the matter for further scrutiny.

The firm advises Manhattan and New York City clients to raise concerns about hidden assets early in the case, since financial records can become harder to trace as time passes and accounts change hands. Shum explains that a phased engagement lets clients decide whether to pursue deeper investigation based on what an initial review uncovers, keeping costs proportional to the issues actually in dispute rather than open-ended from the start.

Spouses who suspect hidden assets in a New York divorce are encouraged to address the issue early, before records become harder to trace. Contacting an experienced divorce attorney may help protect financial interests throughout the process.

About Law Office of Richard Roman Shum, Esq.:

Law Office of Richard Roman Shum, Esq. is a Manhattan-based family law firm focused on divorce, property division, and financial disputes. Led by attorney Richard Roman Shum, the firm represents clients throughout Manhattan and New York City. For consultations, call (646) 259-3416.

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Company Name: Law Office of Richard Roman Shum, Esq PLLC
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Phone: (646) 259-3416
Address:20 Clinton St FRNT
City: New York
State: New York 10002
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Website: https://www.romanshum.com/