For many married couples, money is a source of conflict. In fact, many divorcing couples cite disputes over how to spend and save money as contributing to their decision to file for divorce.
Unfortunately, fights over money often become even more heated during divorce proceedings as both spouses aim to claim their fair share, or then some, of total assets. At times, spouses who are planning to file for divorce may even resort to finding creative ways to hide assets.
5 Ways Divorcing Spouses Attempt To Hide Assets
- Cash withdrawals – Taking out cash withdrawals while making purchases like groceries or clothing is one way that a spouse may attempt to amass cash and effectively hide assets. Overtime, even modest cash withdrawals can quickly add up.
- Loans to family members or friends – Loaning money to a friend or family member is one way to hide assets that may be forgotten or overlooked when dividing assets during divorce proceedings.
- Delaying payment – Requesting that an employer or business affiliate delay a promotion, bonus, commission or other type of payment is another way that a spouse may attempt to hide assets until a divorce is finalized.
- Making large purchases – Becoming an art or antique buff and purchasing valuable items that a soon-to-be-ex may overlook is another way that a spouse may attempt to hide assets. These items can often easily be sold after a divorce.
- Hidden bank account(s) – Opening a new bank account may be one of the more obvious ways to hide assets. However, an unsuspecting spouse who doesn’t manage the family’s finances may have no clue that such an account exists and is secretly being funded.
Even if you and your spouse are on good terms, money, and the prospect of losing it, can be a strong motivator and he or she may take steps to hide assets in a divorce. If you are going through a divorce, it’s important to closely review a spouse’s financial activities and to make your divorce attorney aware of anything that seems suspicious.