Hidden assets can significantly complicate property division proceedings. If one spouse attempts to hide resources from the other to gain an advantage during economic negotiations or litigation, their actions can have profound implications for the final outcome of the property division case.
Particularly for those preparing for high-asset divorces, identifying early warning signs of financial misconduct can help people protect their rights. What are some of the common potential indicators of hidden assets in a divorce?
1. Income discrepancies
If the amount routinely deposited into a joint checking account does not align with the income reported on a tax return, one spouse may have diverted funds to a separate account for their personal use. Some people begin intercepting marital income as they prepare for divorce, while others engage in this misconduct for the entirety of a marriage.
2. Indicators of digital transactions
Bank account statements showing withdrawals or charges related to digital brokerages can be a warning sign of attempts to hide resources through digital investments. Cryptocurrency holdings, for example, can be very difficult to track without the details about the investor’s digital wallet.
3. Unreasonably low values
Sometimes, spouses make thorough disclosures, but they intentionally misrepresent the value of their resources. They might claim that a company worth seven figures is insolvent and therefore without any significant marital value, for example. When the estimated values disclosed for key marital resources clearly differ from the fair market value for those assets, a more thorough financial review may be necessary.
Recognizing attempts to hide assets can help spouses protect themselves and push for fair property division settlements. Those preparing for high-asset divorces are at increased risk of financial misconduct and may need guidance to ensure they secure fair property division terms, and that’s okay.