What Is an Asset Check? How It Works and What It Finds

An asset check is a comprehensive process designed to identify and verify the financial holdings and resources of an individual or an entity. It involves a systematic investigation to gain a clear understanding of a financial picture. Specialized professionals conduct this process, gathering and analyzing information from various sources to provide a detailed overview of assets and liabilities and determine an accurate financial standing.

Defining an Asset Check

An asset check, also known as an asset investigation or asset search, is a systematic examination to uncover and confirm the financial holdings and obligations of a person or business. These investigations aim to provide a comprehensive financial profile by identifying both tangible and intangible assets. Professionals, such as private investigators or forensic accountants, perform this service. Their objective is to create a clear financial picture, crucial for various legal or business decisions. This involves a detailed inquiry into financial records and documentation, often looking beyond readily available information to uncover hidden assets.

Situations Requiring an Asset Check

Asset checks are initiated in various situations requiring a financial understanding. In divorce proceedings, an asset check helps ensure equitable division of marital property by uncovering all assets, including hidden ones. This identifies undisclosed bank accounts, investments, or real estate to prevent one party from gaining an unfair advantage.

For debt collection, asset investigations identify recoverable assets belonging to a debtor. Creditors use these checks to determine if a debtor has sufficient means to satisfy a judgment, making collection efforts more efficient. This includes locating bank accounts, real estate, vehicles, and other valuable property for debt repayment.

In estate planning or probate, asset checks help determine a deceased person’s full inheritance and ensure proper distribution to heirs. This is useful when an individual dies without a clear record of possessions or if undisclosed assets are suspected. In litigation, asset checks assess the financial standing of parties, providing insights into their ability to pay potential judgments or settlements.

Assets Included in a Check

An asset check investigates a wide range of assets, encompassing both tangible and intangible forms. Tangible assets include physical property that can be seen and touched, such as real estate (residential homes, commercial properties, undeveloped land) and vehicles (cars, boats, aircraft). Valuable personal property like art, jewelry, antiques, and other collectibles also fall under tangible assets. These possessions contribute significantly to an individual’s net worth and are often part of a thorough asset investigation.

Intangible assets lack physical form but hold monetary value. This category includes bank accounts (checking, savings, money market), investment portfolios (stocks, bonds, mutual funds, certificates of deposit), and retirement accounts (401(k)s, IRAs, pension plans). Business interests (ownership in corporations or partnerships), intellectual property (patents, trademarks, copyrights), and assets held in trusts are also investigated.

Conducting an Asset Check

Conducting an asset check involves a methodical investigative process using various sources and techniques. Professionals often begin by reviewing public records, accessible through government databases, local courthouses, or online platforms. These records include property deeds, vehicle registrations, business filings with the Secretary of State, and Uniform Commercial Code (UCC) filings, which reveal interests in personal property used as collateral.

Specialized financial databases provide insights into an individual’s or entity’s financial activities. While direct access to private bank account balances is restricted, investigators can identify the existence of accounts or financial relationships through legal channels or by subpoenaing records. Credit reports, when legally obtainable, can reveal a subject’s debt obligations, open accounts, and payment histories.

Forensic accounting techniques are employed to trace funds, especially where assets may be hidden or commingled. This involves a detailed analysis of financial statements, bank records, and tax returns to identify inconsistencies, suspicious transactions, or undisclosed financial activities.

The investigative process aims to be thorough and legally compliant, often involving collaboration with attorneys to ensure evidence gathered is admissible in legal proceedings. Surveillance, though less common for direct asset discovery, can sometimes provide clues about an individual’s lifestyle or access to hidden assets, leading to further financial investigation. The timeline for an asset check varies, typically ranging from one to two weeks for routine cases, but more complex investigations can take longer and may incur costs from a few hundred to several thousand dollars, depending on the depth and scope required.