Hidden Assets: What Divorcing Parties Need To Know

It's unfortunately easier than ever to hide away assets during a divorce. The motivations for doing so are clear – one party may not want to share that asset in a divorce agreement. Also, spousal support and child support are based on assets and income so hiding some of that could result in a lower ordered support amount. Spouses that think they know all about their former partner's financial situation might want to review the information below for signs of hidden assets.

Limited Access – When you can no longer access websites, drawers, and accounts that you used to access, your spouse could be trying to hide assets from you. Be sure you tell your divorce lawyer when that happens (but avoid having it out with your spouse).

Cash Hoarding – This way of putting aside cash can be difficult to detect unless you are wise to it. In this case, your spouse could be getting cash back when they buy something. In many cases, up to $100.00 can be paid with a purchase, and once your spouse has the cash, it could be hidden anywhere with no signs of it on your bank statements.

Buying and Owning Cryptocurrency – This type of currency was practically invented for hiding assets. While tracking this form of currency could come down to hiring a forensic accountant to trace it, you might be able to track the initial purchase on your bank records or find mention of it on your spouse's income tax return.

Business Interests – Spouses that own or have part ownership of a business may be able to easily hide assets from spouses by funneling cash through their business accounts. Just having a business involved with a divorce can call for more scrutiny when it comes to financial disclosures. Your attorney can get the judge to issue a subpoena for your spouse's business records if necessary.

Tricky Tax Moves – Did you know that you can defer a tax refund until the next year? Your spouse could be relocating what should be marital assets by making that move. Even if you don't normally pay a lot of attention to your tax filings, you can always request a copy of previous tax returns by contacting the IRS. Speaking of deferment, your spouse's employer could also offer ways to hide money by offering to defer commissions, bonus checks, stocks, and more for later – after the divorce is final. Employers do have to submit information about these financial actions if ordered by the judge.

Speak to your divorce lawyer to learn more about uncovering hidden assets.