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Your soon-to-be ex could be hiding assets

On Behalf of | Jan 14, 2025 | Family Law |

If you have decided to divorce, your spouse might be tempted to hide assets from you. While you may aim for transparency during the proceedings, your partner might be inclined to shield assets to gain an unfair advantage.

As such, you should know that asset hiding in anticipation of a separation is not just unethical; it’s illegal. Unfortunately, the practice remains surprisingly common. Therefore, understanding how assets can be concealed when navigating a divorce or preparing for one is important.

How assets are commonly hidden

Your partner might open bank accounts unknown to you a few months before the divorce. Money can be funneled into these accounts through underhanded means, such as fake expenses or over-withdrawals from joint accounts.

Additionally, your partner might undervalue or commit real estate, collectibles or business assets during asset declarations. Your partner might prefer this strategy if they have a self-owned business where they can manipulate income and expenses.

Your spouse might also “gift” assets to friends or family members, intending to reclaim them after the divorce is finalized. These gifts could include cash, property or even valuable personal items.

If your spouse is employed, they may decide to postpone bonuses, commissions or other forms of compensation until after the divorce settlement. This tactic makes it appear as though they earn less than they truly do.

Red flags to watch out for

While some asset-hiding tactics are subtle, certain behaviors can raise suspicion. You should watch out for unusual financial activity from your soon-to-be ex, such as:

  • Sudden withdrawals
  • Unexplained transfers
  • Large expenses without clear justification

You should also be worried if your partner limits your access to financial accounts or documents. This could indicate they are hiding something. Furthermore, switching to a new financial advisor or accountant during a divorce can signal an attempt to manipulate records. Moreover, if your ex appears to live beyond their reported means, there’s a chance they have hidden income or assets.

Divorce is challenging enough without the added stress of financial dishonesty. Being informed about the tactics your soon-to-be ex-partner may use to hide assets can empower you to protect your financial future. By recognizing red flags and seeking hands-on legal guidance, you can help to better ensure a fair division of assets.

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