When couples divorce, they have an obligation to share their property and divide responsibility for financial obligations. While there is an expectation that people should act in good faith and provide honest disclosures, the reality is that many people have intense negative emotions during divorce. Some people may engage in unscrupulous or even illegal activity to obtain the upper hand.
People who are usually very honest might try to hide assets and lie to their spouses or the courts about their financial circumstances. The more property that spouses have together and the higher their overall income, the greater the risk of hidden assets during divorce and the more of an impact attempts to hide resources might have.
Where can spouses often find hidden assets as they prepare for divorce?
In secret, possibly offshore, financial accounts
The process of hiding marital assets often begins during or even before the marriage. One spouse might divert a portion of their income from a shared financial account to set funds aside for themselves as a financial safety net. They may go so far as to open an international bank account as a means of avoiding detection. Particularly in scenarios where people suspect international assets or the diversion of financial resources in particular, the support of a forensic accountant could help locate and value diverted funds.
In digital resources
The digital marketplace is currently one of the least transparent ways to invest. The use of blockchain records to track the ownership of assets like digital currencies means that there is no centralized authority of digital resources. While these investments can be very valuable, they can also be very difficult to locate. Forensic accountants may also be able to locate signs of marital funds going toward the acquisition of digital assets that one spouse may attempt to hide from the other and the courts.
In storage units or other people’s homes
Many people attempt to hide physical assets. They might remove certain pieces of art, expensive jewelry or other high-value physical items from the marital home. The goal is to prevent the other spouse from realizing that those assets have gone missing. Spouses may need to go over old photographs looking at household contents or review financial records to look for signs of rent payments toward storage units or safety deposit boxes. They may also want to review recent communication records to see if a spouse may have made arrangements with a friend, coworker or family member to temporarily hide property at their home.
Locating hidden property is crucial for those seeking a fair outcome during property division proceedings. Spouses who hide assets in divorce may put others at a disadvantage, but they may also be accountable for that misconduct if they get caught.