If your marriage is ending, you may feel as if you are living with the enemy. As your trust in your former partner diminishes, your suspicions that he or she may be working against you may intensify, and in many dissolving marriages, one partner is wise not to trust the other.
The spouse who decides to leave a marriage first is also the first to prepare. This often means setting aside money to prepare for a new life. Some may even try to conceal assets to keep them out of the divorce process. How do you know if your spouse is concealing assets? The following are some of the most common ways that spouses try to conceal assets.
By transferring assets to a friend or separate bank account
This is among the more obvious and common methods of attempting to conceal assets. Many people simply open a new bank account (often through an entirely separate financial institution) and move money into it as a safety measure ahead of a looming separation or divorce. Another common move involves transferring money to a friend, with the understanding that the money will be transferred back after the divorce proceedings are finalized.
By delaying invoices or requests for payment
A spouse operating a family business may may intentionally hold off on invoicing clients if they believe a divorce is imminent or about to be finalized. The idea here is to keep this income separate from the other spouse and make it a non-issue in the courtroom by not having anyone know of its presence in the first place. Similarly, your spouse may try to delay a promotion or raise until after a divorce is finalized in an effort to minimize the amount of money that he or she will have to share with you.
By overpaying the Internal Revenue Service
If your spouse knows a split is imminent, he or she may intentionally overpay the IRS. A relatively common method of doing so involves using the money that comes in a tax return from one year to pay the taxes for the following year. If the amount is overpaid, the party will receive a check from the IRS in the amount of the overpayment. If the divorce has already gone through at this point, the party will get this money free and clear without having to document it or share it with you.
These are just a few of many methods your spouse may use to hide assets and reduce the amount of money that must be split between you. If you believe your partner may be hiding assets, consider getting in touch with a divorce attorney to learn about your options.
