Technically, if you and your spouse are getting divorced, neither of you are supposed to hide assets. You have to disclose them as you go through the property division process.
However, people will use many different tactics to attempt to hide money and keep it to themselves. Some just take withdrawals and put the money in a safe deposit box. Others buy expensive items and underreport the value. But in many cases, people simply move money around so that it doesn’t appear to be in their name at the time of the divorce. Here are two ways this could happen.
Giving money away
First off, your spouse may give money to someone else to hold for them until the divorce is over. This will likely be a close friend or a family member.
It’s very common for people who do this to come up with a reason for the transaction. Maybe your spouse says that he or she “suddenly remembered” a debt from years ago that they forgot to pay back. Or perhaps they claim that the other person had a business idea, so they’re just investing in that business. But the actual plan is for the other person to give the money back after the divorce concludes.
Transferring money into other accounts
Your ex may also just try to put money in accounts that make it appear that they don’t own those assets. An example of this is if your spouse is a business owner. They could begin to transfer personal funds into business accounts or make up fake business debts that make it appear that they have more liabilities than they actually do. Once again, they’re just trying to distort the financial picture to prevent fair property division.
If you’re worried that your spouse may try this during your divorce, be well aware of the legal options at your disposal.