Hiding assets during a divorce is unlawful, but it does happen. If you are divorcing, it is worth remembering that your spouse could be one of those attempting to do it. While they probably aren’t, it would be unwise to discount the possibility entirely, especially if you notice things that cause you to be suspicious.
Here are some of the ways one spouse might try to hide assets from the other.
Moving money within the financial system
There are various ways to move money within the financial system to make them harder to reach. Some states specialize in helping people from other states hide their money, as do some countries and offshore territories. A more recent option in the same vein is to move money out of the physical world and usual financial system altogether and into the virtual one through investing in cryptocurrency.
Making purchases in other people’s names
If your spouse takes a sum of money and buys a property, then you’d obviously want to consider that in the property division process. If they instead register that property in someone else’s name, you might never know it exists. Once the divorce is gone their accomplice can transfer the property to them, or repay them in some other form, cutting you out of the loop entirely.
Those are just some of the ways people attempt to hide assets, but there are many more. Hiding assets does not always begin at the point of divorce, either. Some spouses have been doing so for months or years before the decision to divorce is taken or spoken. Learning more about how best to check for any improper financial behavior can be a wise precaution when divorce is on the cards.