As you sit across from your spouse, discussing the terms of your divorce, you may think you’re having an open and honest conversation. But what if your spouse is hiding something from you? What if they’re concealing assets, manipulating financial records or misrepresenting their income? Unfortunately, this is a common occurrence in many divorces.
Why do people hide assets?
People try to hide assets during divorce for various reasons, including to punish their spouse or to protect their own financial interests.
Lying about finances in legal statements and paperwork is both unfair and typically illegal. Financial misrepresentations make it all but impossible to divide assets equitably and peacefully. Also, hiding assets can lead to severe legal consequences, including fines, penalties and criminal prosecution.
Common ways spouses hide assets
There are several tactics people use to hide, misrepresent or undervalue assets. Be aware of these common strategies:
- Secret accounts: A spouse might open and fund a bank account you don’t know about.
- Undervaluing businesses: If your spouse owns a business, they might try to make it look less profitable than it actually is.
- Hidden cryptocurrency: Digital currencies can be tricky to track, making them tempting places to hide money.
- Delaying income: A spouse might postpone a bonus or raise at work until after the divorce is final.
- Overpaying taxes: Intentionally overpaying taxes can create a future refund they receive after the divorce.
Being informed about these methods can help you spot red flags. Understanding these tactics is the first step in protecting your financial future.
Leveling the playing field
While you can try to investigate these things yourself, complex assets or a financially savvy spouse could make it very difficult to conduct a comprehensive investigation.
Attorneys, forensic accountants and appraisers are valuable allies when it comes to having a clear, accurate picture of your finances during a divorce. They can trace hidden assets, analyze complex financial transactions and ensure you have a clear picture of your marital estate.
Don’t let suspicion and uncertainty cloud your divorce. By understanding the tactics used to hide assets and seeking professional guidance, you can work toward a fair and equitable settlement.