Methods used to hide assets ahead of divorce
If you and your spouse are heading for a split, you may have experienced a breakdown of trust somewhere along the way, whether due to infidelity, spending habits or what have you. If you already distrust your partner, you may have valid concerns about him or her attempting to stockpile assets and conceal money from you so that he or she gets the better deal after the divorce.
Regrettably, it is not uncommon for divorcing couples to conceal assets from each other, but know that many spouses who engage in such actions rely on similar tactics in doing so. For example, if your husband or wife is hiding money or assets from you, he or she may do so in the following ways:
Overpaying the Internal Revenue Service
Some spouses who anticipate that their divorces will be final by the next tax season intentionally overpay the IRS so they have a nice little head start on the following year’s taxes once the divorce becomes final. Shady? Sure; but it happens more frequently than you might want to think.
Unloading assets to friends and colleagues
If your spouse suddenly sells off a motorcycle, diamond necklace or other asset to a close friend or confidante, this could be a red flag. He or she may have an arrangement in place with that person to transfer, sell or otherwise return the assets after the divorce.
Delaying commissions, promotions or raises
If your spouse has a large commission coming his or her way for work, or if he or she will soon receive a promotion or pay raise, your spouse may request to delay such actions until the divorce is final so that the additional money does not fall into your hands.
These are just a few of the tactics husbands and wives sometimes use to attempt to gain a financial advantage during divorce. Often, where there is smoke, there is fire, so if you have suspicions, do your research to avoid getting the short stick in your split.