If you’re moving toward a divorce, one thing to be wary of is a spouse who attempts to hide assets. They do this to keep them from you. They will attempt to hide the assets before disclosing what they own to the court, keeping those assets out of the property division process. This is illegal, but people try it anyway.
But how are they going to do it and what red flags should you look for? Below are a few things to consider so you can seek the proper allocation of your marital assets.
Giving loans to family members
One common tactic is when a person gives a loan or a “gift” to a family member or a close friend. If your spouse does this, they may have an excuse ready, such as calling it a business loan or the repayment of an old loan they forgot about. But they really just want to give the money away until after the divorce, when they get it back from the other person.
Putting money aside
Another tactic is just to try to transfer assets to other locations. Maybe your spouse has been taking money out of the ATM and putting it in a safe deposit box. Maybe they’ve opened up offshore financial accounts so they can transfer money into these hidden accounts, rather than your joint savings or bank accounts.
Making overpayments
A third tactic people sometimes use is to overpay debt that they owe. Your spouse could send too much money to the IRS during tax season, for instance, or overpay the credit card company. They know that they will eventually get their refund check, but they’re hoping to get it after the divorce so that they can keep 100% for themselves.
These are just a few examples of issues you should watch for during divorce. Take the time to carefully look into your legal options if you believe your spouse is attempting to hide assets.