Signs a Spouse May Be Hiding Assets in a California Divorce

August 10, 2012

It is not unusual in marriages for one person to be solely responsible for the family's finances. Unfortunately, when couples divorce, such an arrangement makes it easier for one spouse to take advantage of the other's ignorance of the family's financial situation and push for an unfair property division. It is illegal and unethical to hide assets during divorce, but people try to do it with alarming frequency. People going through divorce should be aware of the signs that their spouses may be hiding assets and the methods they typically use to do so.

Indications a Spouse Is Hiding Assets

A huge indicator that a spouse may be hiding assets is if he or she is particularly averse to using attorneys to settle the matter. Those who hide assets rely on their spouses' lack of information, and they know that other professionals trained to look for assets will not be so easily fooled.

Spouses who are self-employed often have an easier time hiding assets, as they can bury personal spending in with business expenses. They can also make business decisions that will reduce the value of the business on paper so that it will seem to be worth less.

Spouses who are hiding assets may get defensive when questioned about finances. They may have bank statements or other financial documents delivered to an address other than the home address. They may also tell their spouses that they received salary cuts.

Where Spouses Typically Hide Assets

Some of the more common ways people try to hide assets in divorces include:
-Underreporting income on tax returns and other financial reports
-Buying expensive things like art or antiques and having them appraised under market value
-Hiding cash in secret safe deposit boxes
-Opening accounts in children's names
-Transferring stock
-Deferring salary or bonuses until after the divorce is final
-Creating fictional debt by paying money to family or friends for a contrived reason, which the recipient will repay after the divorce


Discovering Hidden Assets

To determine whether a spouse is hiding assets, people going through divorce can have financial professionals review financial records to look for discrepancies between what a spouse declares his or her worth to be and what he or she actually has. They can review business records for accuracy and determine whether a couple's standard of living matches the level of income the spouse is reporting.

People who suspect their spouses are hiding assets during a divorce should also seek the assistance of a capable divorce attorney who can help ensure they receive just property settlements.

Article provided by Bohm, Matsen, Kegel & Aguilera LLP
Visit us at http://www.bfka-law.com