As you go through divorce, you will have a lot of things on your plate. Mentally, emotionally and even physically, divorce is a taxing process. Unfortunately, some opportunistic spouses might take your distraction and stress as a chance to hide assets.
Asset hiding is a big problem among divorcing couples. But what is it? And how can it potentially affect you?
What are hidden assets?
Forbes discusses the potential of finding hidden assets during your divorce process. First, you must understand what asset hiding is and why it can have a negative impact on you. When a spouse hides assets, they are attempting to prevent an equitable division of your assets during the divorce. In other words, they try to make it seem like they have less than they do. That way, you get less and they get to keep more.
How are assets hidden?
Spouses often go about this in very covert or convoluted ways. For example, it is common among business owners to fabricate entire employees. In doing so, they can “pay” a worker a paycheck, while actually pocketing all of that money themselves. Many will also pretend to repay debts to friends or family members, intending to collect the money again after the finalization of the split.
You can often identify red flags that may point toward hidden assets on your own. Your spouse might be reluctant to show you financial records. They may suddenly have an influx of expensive items. But the best way to tell is through the aid of forensic financial specialists. They can read the paper trail and electronic footprint of your spouse to find all the assets you might have missed.