In divorce, fair property division depends on the court having a full understanding of a couple’s shared property. Unfortunately, it is not uncommon for some to try to shield certain assets to sway the settlement in their favor. What assets do people often try to hide?
Money
The most straightforward method of hiding assets is simply keeping cash out of the bank. This might involve physically hiding cash in a safe or a secret location.
Others may hide financial assets in different ways. They may maintain secret bank accounts, including accounts in foreign countries that they do not report to avoid taxes or legal scrutiny. They may make investments, including investments in assets like cryptocurrencies that are difficult to trace. Tracking this money can create significant challenges during the divorce process.
Undervalued or omitted items
Some individuals may undervalue or fail to disclose some possessions. High-value items like art and antiques can be difficult to appraise accurately. Meanwhile, items like coins, stamps or sports memorabilia can be highly valuable but easy to overlook. Assets purchased shortly before the divorce proceedings that someone has not disclosed may be particularly suspect.
Employment benefits
Some people may use benefits from their work to hide their earnings. Postponing bonuses, raises or commissions until after the divorce decree can effectively hide those assets during the divorce process.
Real estate
During a divorce, one party might attempt to hide real estate by transferring the property title to a friend, family member or a newly created entity (such as a trust or corporation) without disclosing the transaction. They might also underreport the value of the property, claiming it is worth much less than its actual market value.
If you suspect that your spouse has tried to hide assets, it is vital to seek guidance from experienced professionals. An attorney with experience in complex asset division can offer guidance, while a forensic accountant can help uncover discrepancies and trace assets that you may not have been aware of.
Understanding your rights and the tools at your disposal can help you uncover hidden assets and receive your fair share. By being vigilant and enlisting the help of professionals, you can protect your interests and work towards a fair and equitable resolution.