When going through a divorce, assets and asset division will often take up a big portion of the time devoted to it. Even if all goes to plan, this is a long and difficult process.
Of course, if someone attempts to hide assets, it is even more difficult.
How asset hiding works
Forbes discusses finding hidden assets in divorce situations. First of all, what does it mean to hide assets? In a divorce, any asset that jointly belongs to the couple will be up for division. In some states, this is equal division, or an equal 50/50 split. In others, it is an equitable division, where the rough net worth of one person’s assets equal out to the other’s even if one person gets fewer items.
When someone wants to hide assets, they usually do it out of feelings of spite toward their partner or because of financial security fears.
Tactics used in asset hiding
They may use different tactics in an attempt to hide assets. For example, they could pretend to pay back a debt to someone, when in reality that person is in on it and will return the money later.
It is also common to hide assets by transferring money into physical objects. For example, someone might buy an expensive piece of art with the intent of returning or selling it after the divorce.
Of course, no matter what the reason or method, hiding assets is illegal. Anyone who notices potential red flags can take action to discover whether or not their spouse is actually hiding assets.