When you go through a divorce, each side has to fill out forms that outline their financial situation. Most people do this honestly and without trying to hide anything. However, there are always a few people who think that they can hide assets so that they can walk away with a better deal than their spouse in a divorce.
There are many ways that your spouse can try to hide assets during a divorce. Many of these don’t involve trying to hide cash. Consider these possibilities:
- Your spouse might ask their employer to delay a promotion or bonus payment until after the divorce is final so it looks like they have less income.
- They may create fake debts to funnel money into hidden accounts that they will access later.
- If your spouse owns a business, making its profits appear lower is a way to diminish their assets on paper.
- They can create payroll accounts that go to family members or friends, which allows them to divert that cash from their own accounts.
- They may funnel money into purchases and then insist that those items were gifts for family members.
- They may pour money into offshore trusts or investment property that they carefully hide.
Naturally, these are just a few examples of how someone can hide their wealth from a spouse.
Hiding assets during a divorce is always illegal. If you think that your spouse is doing this, discuss the situation with your attorney. You may need to bring a forensic accountant onto your divorce team so that you can find out what’s going on. It’s important to address potentially hidden assets immediately since you can’t get the settlement you otherwise deserve.