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The risk of asset concealment in a high-asset divorce

On Behalf of | May 17, 2024 | Uncategorized |

Divorces involving high-net-worth spouses can be equally, if not more, emotionally taxing than typical splits. The added challenge and stress of divvying up a significant portfolio of assets often adds tension and complicates proceedings.

As securing financial stability becomes a top priority, individuals might employ tactics to conceal their wealth. Achieving a fair and accurate division of marital property will demand a considerable amount of effort.

The different ways individuals hide wealth

Individuals may go to any lengths if that means they can maintain control over their financial resources. Here are a few common schemes:

  • Manipulating taxes: Overpaying taxes may entitle an individual to a tax refund that comes long after the divorce is finalized.
  • Undervaluing assets: Individuals may mispresent the value of their business, investments and other assets.
  • Opening offshore accounts: This puts valuable assets out of reach.
  • Converting assets into cryptocurrency: The anonymity and intricacy of crypto make it possible to stash cash as digital currencies that are hard to trace.
  • Transferring assets to third parties: Spouses may lend or temporarily gift assets to friends or family, only to retrieve them after divorce.
  • Fabricated debts: Creating false debts and liabilities may reduce the total value of assets for distribution.

Strategies for uncovering hidden assets

People go to great lengths to conceal assets they believe rightfully belong to them alone. It may be prudent to engage a group of seasoned professionals. Consider working with:

  • Forensic accountants: They can scrutinize financial records for discrepancies.
  • Professional appraisers: They can help determine the actual value of assets requiring specialized knowledge, such as artworks, luxury goods and investments.
  • High-asset divorce lawyer: Their experience allows them to initiate legal procedures, such as subpoenas, which can compel full asset disclosure.

There is much more to gain and lose in a high-asset divorce. Securing solid support, along with a seasoned attorney, during a divorce may pave the way to fairer proceedings.