Hidden assets during divorce a growing problem
Whatever means are used to hide assets, it is important to note that the practice is not only cruel and deceptive but also illegal.
February 27, 2013
Hidden assets during divorce a growing problemArticle provided by Lindsay, Lindsay & Parsons, Attorneys at Law
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Not all marriages end amicably. Unfortunately, some spouses may feel jilted and could attempt to hide assets in an effort to make sure the other does not get his or her due share.
With the right help, assets hidden during divorcecan be uncovered.
Signs spouses are hiding assets
Some telltale signs that a spouse may be hiding assets include the following changes:
-Less mail received at home address
-Salary decreases
-Increased bills from creditors
-Defensive behavior
A sudden decrease in the amount of financial statements arriving in the mail is a red flag. Check with the bank to make sure the accounts still exist and that the home address is still listed.
A second sign is a change in a spouse's salary. The spouse may be attempting to defer payment until after the divorce is finalized. This allows the spouse to keep the actual salary from the court so that the full amount is not considered in the determination. Instead, the spouse can receive the payment after the divorce is finalized in a form of deferred compensation.
Another way spouses attempt to receive deferred compensation is by overpaying creditors like the IRS. The overpayment will remove cash from accounts considered by the court when splitting the couple's assets, but allows the spouse to receive a refund after the divorce is finalized.
In addition, it is also important to take notice of any changes in behavior. If a spouse is suddenly defensive when asked about assets, or becomes secretive about the family's finances, take note. It could be a red flag.
Ways to find hidden assets
A spouse may hide assets in many ways, including:
-Purchasing valuable assets
-Creating fake debt
-Transferring stock
-Literally hiding money
One way to hide assets involves purchasing things that many people would overlook. An example could be an expensive piece of artwork or furniture or other additions to a collection. This removes money from the accounts and puts it into an item that could easily be undervalued during the divorce.
Assets can also be hidden through the use of phony transactions. This can include fraudulent loans or stock transferred into an account set up in another person's name only to have the money returned after the divorce is finalized.
In addition to these fairly high tech methods, some still use the old fashioned method of literally hiding money. Cash could be stashed in a safe deposit box or even under a mattress.
Whatever means are used to hide assets, it is important to note that the practice is not only cruel and deceptive but also illegal. If you or a loved one suspects that a spouse is hiding assets during a divorce, it is important to contact an experienced divorce attorney to better ensure your legal rights are protected.