If you’re going through a divorce in New Jersey and have offshore accounts, you’re probably wondering what happens to those funds. Offshore accounts don’t stay hidden just because they’re located outside the U.S.
Understanding offshore accounts in divorce
In a high-asset divorce, both parties must disclose all assets, including those held overseas. Offshore accounts are subject to the same equitable distribution rules as domestic assets. That means New Jersey courts aim to divide them fairly, not necessarily equally. If one spouse tries to hide or undervalue offshore assets, the court may impose penalties or adjust the final division.
Proving ownership and value
You’ll need documentation to show who owns the account and how much it’s worth. This might include bank statements, wire transfer records, or tax filings. Offshore banks often have strict privacy laws, so getting the information may take extra time. Still, if the account was created or funded during the marriage, it’s likely considered marital property and will be divided accordingly.
Tracing the source of funds
The court looks at when and how the money got into the offshore account. If the funds came from a business or salary earned during the marriage, they’ll likely count as joint assets. But if the account was funded before the marriage or with inherited money, that portion might stay with the original owner. Keep in mind, however, that any increase in value during the marriage could still be shared.
Why transparency matters
Trying to hide offshore accounts or transfer funds secretly can backfire. Courts have access to forensic accountants who specialize in tracking international assets. If caught, you could face serious legal and financial consequences. Being upfront protects your credibility and helps the court make a fair decision.
Offshore accounts don’t fall outside the reach of New Jersey divorce courts. If you disclose them properly and provide proof of ownership, the process becomes more straightforward. Staying honest keeps you out of trouble and helps ensure a fair outcome for both sides.
