Property division matters are often one of the most difficult elements of divorce, in part because people often engage in misconduct out of spite. Someone who resents the idea of sharing their income and resources with a spouse in a divorce may intentionally hide their assets to avoid splitting them during divorce negotiations or litigation. Hidden assets can lead to uneven and unfair property division terms.
It is, understandably, beneficial to locate hidden assets before signing a settlement or attending hearings in family court. The following are some of the locations where people might attempt to hide marital assets from a spouse.
In secret bank accounts
Some people start a new checking account when they make the decision to divorce. They slowly set money aside into that account either by making cash withdrawals from shared accounts or diverting funds from their paychecks. Technically, starting a separate bank account is not inappropriate, but failing to disclose it during divorce proceedings is. It is sometimes necessary to go over income records very carefully to find proof of diverted funds and track down a secret bank account.
With friends or family
Sometimes, what people choose to hide are actually physical resources. Jewelry, works of fine art, furniture and other valuable personal property might disappear from the marital home. People sometimes remove assets that they want to retain or assets that they hope to conceal from their spouse. They may move those assets to the homes of other people that they know and trust. In some cases, they might claim they are a gift or assert that they sold the asset even though they accepted a tiny fraction of its fair market value from the buyer. Their intention might be to reclaim those assets after the divorce.
In safety deposit boxes and storage units
Someone hiding financial records, physical documents related to investments or small but valuable assets, like jewelry, might move them to a safety deposit box. Other people hiding large assets might acquire a storage unit temporarily where they move furniture and other high-value assets. Financial records can provide evidence that an individual has rented a safety deposit box or storage unit to hide resources from their spouse. It is often a thorough analysis of financial records and a review of any property disclosures that help someone identify hidden assets or establish that their spouse likely has hidden property.
Locating and valuing hidden assets can help people pursue a fair and appropriate property division arrangement when they divorce. Those familiar with common forms of divorce-related misconduct can more effectively protect themselves and their interests as they prepare for court.