Hiding of assets is a particularly common occurrence in high-asset divorce, where couples have significant wealth to be shared with their soon-to-be exes. Divorce proceedings can be emotionally challenging, but the complexities often extend beyond emotional concerns when it comes to hidden assets.
Did you know that divorcing spouses are required to disclose all their financial assets? However, this rule does not stop some spouses from hiding assets in anticipation of divorce—spouses who do this hope that it will safeguard some of their assets from property division.
Motives behind asset hiding
Divorcing spouses may attempt to hide assets for various reasons, including financial gain, revenge or an attempt to secure a more favorable settlement. This could involve concealing bank accounts, real estate or valuable possessions in an attempt to ensure they don’t become part of the divorce settlement.
Individuals may also seek to minimize spousal support or child support payments. By manipulating their financial disclosures, they hope to pay less or be completely exempt from paying alimony and child support. By understanding these motives, one can better anticipate and counteract such actions.
Unveiling hidden assets
Discovering hidden assets requires a strategic approach, often involving legal tools that can compel transparency. For example, you can leverage court orders and forensic accountants to help uncover concealed financial resources.
Thoroughly examining financial statements and documentation is a fundamental step in asset discovery. Bank statements, tax returns and investment portfolios can reveal discrepancies that may indicate attempts to hide assets.
Encouraging open and honest communication between divorcing spouses may also mitigate the temptation to hide assets. Establishing a cooperative environment can lead to a more amicable resolution.
If you suspect that your soon-to-be ex might be concealing assets, you should take action before it’s too late. By seeking legal counsel, you can find a personalized solution to your unique situation.