As much as financial openness is required during divorce, it is not guaranteed. You should not sit back and assume your spouse will be financially transparent and the divorce settlement will be fair. They may attempt to hide assets for various reasons.
It could be due to the fear of losing financial stability, to punish you or simply out of greed. Whatever the case, you are bound to lose out if your spouse hides assets during divorce proceedings, and it’s important to be proactive in protecting your interests.
Common methods used to hide assets in a divorce include:
- Transferring assets to friends or relatives
- Overpaying taxes
- Undervaluing or concealing assets
- Creating fake debt
- Falsifying financial statements
The list goes on and on, with varying degrees of financial sophistication. Not everything may be apparent at first glance.
Beware of these red flags
Uncovering hidden assets requires vigilance and attention to detail. For instance, you may notice sudden changes in your spouse’s financial behavior, unexplained debt or missing financial documents. They may suddenly become secretive about their finances or make unusual transactions. These signs could be indicators of concealed assets.
Take informed action
Your spouse may be hiding assets, but suspicions alone are not enough. You must provide evidence of their financial dishonesty to ensure a fair settlement. This may involve carefully examining financial documents or using a forensic accountant to identify discrepancies and trace hidden assets. You may also have to use legal discovery tools like subpoenas and depositions.
Remember, the law is on your side. Hiding assets during divorce is illegal and the court may penalize your spouse or take their financial misconduct into account when dividing marital property. Getting personalized legal guidance and an assessment of your situation can help you respond accordingly and safeguard your financial future after divorce.