One of the most challenging things people who are going through a divorce have to do is divide their marital estate. In order to do this properly, there must be a comprehensive list of all assets and debts acquired and otherwise utilized jointly during the marriage. Unfortunately, some spouses may try to hide assets.
Hidden assets may not seem like a huge deal; however, they can become a significant problem. When a party hides assets, it skews the outcome of the property division process and may affect the fairness of support orders. This could mean that the deceptive spouse walks away with a larger share of the marital estate than they should have.
How would someone hide marital assets?
Hidden assets can take many forms. An individual may move something into separate accounts, delay business income, undervalue property or transfer assets to friends or family members. This can become much more complex in high-asset divorce scenarios when cryptocurrency, business interests, bonuses, deferred compensation and similar financial situations are at issue.
What are the warning signs of hidden assets?
In some cases, there aren’t any noticeable signs that a person is hiding assets. When signs are present, they can include:
- Account changes, such as a change in ownership
- Unexplained withdrawals
- Missing statements
- Secretive behavior
- Unexplained decreases in known asset values
Financial records can sometimes make it easier to spot hidden assets. This is often the case when bank statements, tax returns and property records don’t align. Because it can be difficult to spot hidden assets, some people who think this is a likely situation may opt to work with a forensic accountant during their divorce.
Having a suitable property division settlement can to shape your financial future for the better. Working with a legal professional who is familiar these matters may help to clarify your options and develop a plan to move forward effectively.
