Detecting and preventing financial fraud during divorce

March 20, 2013 (Press-News.org) Detecting and preventing financial fraud during divorce

Article provided by Nitti & Nitti Attorneys at Law
Visit us at http://www.nittilaw.com

No one likes to think that their spouse would try to hide money from them, even during the most bitter divorce. Unfortunately, however, asset concealment during divorce occurs far more often than many people would like to believe. Therefore, to protect your long-term financial wellbeing, it is important to be aware of some common warning signs of marital financial fraud when going through a divorce. If you suspect your soon-to-be ex-spouse of hiding assets from you, be sure to bring it up with your divorce lawyer right away. Your attorney can help locate hidden assets and make sure that you get your fair share.

Motivation and methods vary

People who conceal assets from a spouse during divorce do so for a variety of reasons. For instance, some people who commit marital financial fraud may rationalize their behavior by convincing themselves that they are legitimately entitled to the funds; others may do so out of concerns for their own financial wellbeing after divorce, while still others are driven purely by a desire for revenge. Whatever the reasons, however, concealing assets during divorce is both illegal and unethical.

The methods that people use to hide money and other assets from one another during divorce can range from simple to complex. Common examples include:
-Hiding cash and other valuables in a safe deposit box or other location

-Purchasing expensive items whose value may be easily overlooked, such as artwork, antiques or collectibles

-Transferring stocks or other investments into someone else's name on a temporary basis, with the intent of transferring them back after the divorce has been finalized

-Overpaying on debts or creating phony debts to friends or acquaintances in order to create the impression of reduced wealth, knowing that the money will be paid back later

-Deferring salary or bonuses until after the divorce in order to keep the income off the record

Be aware of warning signs

To prevent and detect marital financial fraud, stay alert and involved in your finances at all times during marriage as well as divorce. If you allow your spouse to manage your financial affairs for you, it will be much easier to conceal assets from you without your detection should he or she wish to do so. In addition to taking an active role in your financial affairs, be on the lookout for potential warning signs, such as:
-Your spouse seems reluctant to share bank account passwords or other financial information with you
-Your spouse begins taking out unusual amounts of debt or complaining of sudden financial hardship
-Your spouse has bills and other financial documents delivered to work or another location outside the home
-Your spouse opens multiple bank accounts without having a clear reason for doing so

If you suspect your spouse may be concealing assets from you, be sure to talk your situation over with an experienced divorce lawyer in your area. A knowledgeable attorney will listen to your concerns and will work hard to secure a fair settlement and hold your spouse accountable for his or her actions.