Discovering Hidden Assets During Divorce

April 05, 2012

Discovering Hidden Assets During Divorce

In marriages where one spouse is responsible for the couple's finances, it is easy for one spouse to prey on the other's ignorance and attempt to hide assets should the couple go through a divorce. While it is both illegal and unethical to try to make property division in a divorce uneven by hiding assets, many spouses try to do it. People should be aware of the signs a spouse may be hiding assets and some typical places people hide assets.

Signs a Spouse Is Hiding Assets

People may engage in certain tactics when they are attempting to hide assets from a spouse. They may have bank, credit card and other financial statements delivered to different addresses. They may report dramatic salary decreases or make intentional overpayments to creditors or the IRS, thinking they will get the money back after a divorce is final.

Spouses who own businesses may suddenly hire new employees, even if business is not increasing, as a way to make the company look like it has more liabilities and therefore is worth less money.

When questioned about finances, spouses trying to hide assets may behave defensively or get angry and irritated.

Typical Ways Spouses Hide Assets

Some of the more common ways that people try to hide assets in divorce include:
-Purchasing expensive items such as art or antiques and having them undervalued
-Putting cash in a safe deposit box of which the other spouse is unaware
-Opening an account in the name of a child
-Creating false debt by paying a friend or family member money for some fictitious reason, knowing he or she will get the money back after the divorce
-Underreporting income on tax returns and financial statements
-Deferring salary, bonuses or commissions until after the divorce is final
-Transferring stock

Discovering Hidden Assets

One of the ways to discover whether a spouse is hiding assets is to work with a financial expert to create a "lifestyle analysis," or a complete picture of the couple's finances, including income, expenses, assets and liabilities. After looking at the totality of the financial circumstances, a spouse should be able to spot incongruencies more easily.

Consult an Attorney

Divorce is stressful enough without having to worry about whether a spouse is hiding a substantial portion of marital property. If you are suspicious that your spouse is hiding property, talk to an experienced property division lawyer who can discuss your situation with you and advise you of your options.

Article provided by Anthony C. Williams & Associates, PC
Visit us at http://www.anthonywilliamslaw.com