Anyone going through a divorce needs to be aware of the possibility of hidden assets. Many people like to think a partner would never hide assets. However, research has shown roughly 7.2 million Americans hide assets from a spouse during marriage.
Therefore, spouses need to be aware of how partners most likely hide assets until after the divorce is final. You have a right to an equitable distribution of assets, so do not agree to anything until you have checked the following places.
With friends or other family members
Your spouse may transfer assets to a friend or family member. When you ask about this, your spouse says he or she owed money to this person. This is most often a phony excuse. The spouse gives others money with the knowledge he or she will get it all or most of it back after the divorce.
Through a fake employee
There are many ways business owners can hide assets. One way is to keep a friend on the payroll who does not actually do anything at the company. This friend simply hangs onto the money until the business owner, your spouse, needs it back.
Through the transfer of stocks
When dividing assets, it is vital to remember if your spouse has any stocks. When a divorce is imminent, your spouse may transfer the title of these stocks into someone else’s name. The fake company or business partner than transfers the stocks back later.
By overpaying the IRS
This is one particularly sneaky maneuver. Some spouses intentionally overpay the IRS or another creditor. That way, it shows in the person’s record that he or she has less money. After the divorce is final, the spouse can contact the creditor agency to receive a full refund. While these are common methods people utilize, it is critical to know some people can get incredibly creative when they hide money.