If you are going through divorce, you know that matters of property division will come to the forefront in the near future. At that point, you will do whatever it takes to receive the property that you are entitled to.
But what happens if your soon to be former spouse hides assets during the divorce process? This is a concern for many. It is also one that can work against you if you don’t pinpoint the problem right away.
Here are a few things you should be aware of:
— Cash could be stashed in a safe, out of the way place, such as a safe deposit box at a local bank.
— Under-reported income on financial statements and tax returns.
— Overpaying creditors or the IRS. By doing so, your partner can receive a refund in the future.
— Defer salary, commission, and bonuses. A common trick, this ensures that the money is not included during divorce proceedings.
— Transfer stock. This entails the transfer of stock and/or other investment accounts to somebody else, such as a family member or business partner. Once the divorce is over, the person then asks that the assets be transferred back.
It is your hope that your partner is 100 percent honest during the divorce process, but you cannot assume this will be the case. If this person hides assets, it could work against you in the long run. It is important to understand how assets are often hidden during a divorce, as this will help you avoid a situation in which you are duped.
Source: Forbes, “Divorcing Women: Here’s Where Husbands Typically Hide Assets,” accessed April 18, 2016