When going through a divorce, you have plenty of things on your plate. Not only are you dealing with the emotional impact of the split, but you have to go through the financial stressors, too.
This is particularly true when it comes to dividing your assets. Asset division is enough of a headache on its own, but on top of that, you sometimes have to deal with a spouse attempting to hide assets.
What is asset hiding?
Forbes takes a look into the art of finding hidden assets during a divorce. But first, what is asset hiding? This is an act that takes place when one spouse attempts to fudge how many assets they have or how much income they take in. In doing so, they present a false net worth, which means the court will assign them lower alimony pay or child support. They also lose less in the equitable divide, too.
Typical signs of hidden assets
There are typical spots a person may hide assets in and certain tactics they may use to fudge their numbers. Some of the most common include:
- Denying the existence of the assets they try to hide
- Claiming they lost the asset somehow
- Creating debt that does not exist
- Transferring the assets to a third party
For example, they may ask a relative to hold on to a portion of assets for them. They may “pay back” debt owed to a friend, when in reality the friend will return the money after the divorce. They may simply pretend they never received or had the asset to begin with.
Fortunately, it is getting easier and easier to follow electronic trails and see whether someone is lying about their assets. You may need to contact forensic financial specialists and legal help to smooth the way.