During a divorce, it is common for each spouse to split their assets equally. Divorces can get messy when one spouse has more monetary assets than the other, especially when someone feels they are owed something. Individuals may try to move or hide assets to keep their spouse from getting them in the divorce. Utilizing these tactics may not always work, especially when you have a good divorce lawyer. Let’s look at common ways a spouse could hide assets, so you are prepared to dig into their finances during a divorce. Knowing where to look can help you get what you are rightfully owed and set you up for future success.
1- Tax Returns
A tax return is a clear picture of your yearly finances and income. When filing your taxes, you must list all of your assets, real estate, and earnings, which means that any hidden assets will be revealed by looking at the previous year’s tax returns. If your spouse has any deductions or credits that you are concerned about, this can be an indicator of hidden assets.
When reviewing tax returns, you should also look at any discrepancies in the reported income. Compare bank statements to the tax return to see if money is being deposited into other accounts or if income was misreported.
2- Additional Bank Accounts
Hiding money in offshore accounts is a common way to hide assets from a spouse. Transferring funds or properties to these accounts will keep them hidden from authorities as well, making them extremely private.
Some people may also employ a bogus company to help cover their name being attached to the account, hoping this will help the money hide from their spouse or the IRS. This is often why finding these accounts during a divorce can be tricky. If you suspect your spouse is utilizing offshore accounts, work with your lawyer to determine the next steps and how to best find a disguised account.
3- Transferring Money To Friends Or Family
In a rushed effort to save some of their wealth, individuals may transfer properties, businesses, money, or other valuables into the name of a family member or friend. Once the assets are not in the divorcing spouse’s name, they are not taken into account for the distribution by the judge during the proceedings. It is best not to approach suspected family or friends about them harboring assets alone, but rather consult with your lawyer and go through legal channels to uncover the truth.
4- Overpaying Debts
Paying off loans, mortgages, or credit cards early will decrease their overall value. While paying off debt quickly is a smart financial decision, doing it during a divorce will lower the number of assets that are subject to division. Overpaying or paying debts early can be seen as dissipation of assets by a judge. The spouse who overpays may get a less favorable settlement in the end. If your spouse has made large payments on their debts or your marital debts, it could be because they are trying to lower the value of what needs to be divided in court.
5- Investing In Cryptocurrencies
Many Americans have turned to buying online currency, and investing in this unique option can provide many benefits. If you suspect your spouse can hide assets during a divorce, it is best to look into cryptocurrencies. The money invested in cryptocurrencies has some anonymity and is often untraceable. You can move money around to different online currencies without much of a trail.
While cryptocurrencies are divided in a divorce, the anonymity can make it difficult to determine what is actually owed. Courts rely on forensic accountants to track down unreported assets.
Asset Division Help From KNK Law
Hiring a skilled lawyer when you are going through a divorce can help ensure you get access to all the assets you are rightfully owed. Our legal team can help dig up hidden assets without putting you or your finances at risk.
Kaufman, Nichols, and Kaufman have built our reputation as one of the best family law firms in Utah. We focus on divorce cases because they are highly emotional and complex. While a divorce is sometimes necessary, we know it can be taxing to deal with on your own. Working with our lawyers will help you protect your assets for the future and give you a brighter future to look forward to. Schedule a meeting with us today!
