Is Your Spouse Hiding Assets and Planning to Divorce You?

 Posted on November 16, 2022 in High Asset Divorce

Often, when a couple begins to talk about ending their marriage, the process of the breakdown of the marriage has been occurring for some time, whether each spouse realizes it or not. Many times, one of the spouses has already decided they want a divorce and has even put plans into place to protect their financial future, but has not shared those plans with the other spouse. This leaves the other spouse vulnerable when it comes to their financial future. This is a particular problem in high asset divorces.

Who Handles the Money?

It is not uncommon for couples to “delegate” to each other different chores or responsibilities. For example, one spouse may be the one that takes the lead on most of the home decorating decisions or oversees the majority of the couple’s social and family commitments. In most marriages, although one spouse may be the one “in charge” of the responsibility, the other spouse still has input.

This is especially true when it comes to the handling of marital finances. In many marriages, although the couple makes financial decisions together, the responsibility of making sure the bills get paid and watching over investments usually falls to one spouse. Although this system works for these couples, it can put the other spouse in serious financial jeopardy if the spouse who handles all the money decides to file for divorce.

The spouse who handles all the marital finances knows exactly where all of the couple’s joint accounts are, as well as any other monetary sources they have. This also includes all the login and password information to access these accounts. Being the only spouse who handles all the finances also affords that spouse the opportunity to hide assets as a way to keep the other spouse from their fair share of the marital estate.

How Can Assets Be Hidden?

While there are many different ways to hide assets, there are several tactics that people frequently employ in their quest to keep more assets than they are legally entitled to:

• Overpaying taxes – The spouse will make an advance overpayment of federal income tax and then collect the tax refund once the divorce is final.

• Undervaluing luxury items – The spouse will purchase luxury items, such as boats, artwork, jewelry, etc., but claim the item is worth much less in the financial disclosures required in the divorce process.

• Investment transfers – The spouse will transfer marital property to family members, friends, their business accounts, business associates, or a dummy corporation in order to hide the existence of the assets.

• Hiding cash – While it may sound like a scene from a comedy TV show, spouses have been known to hide cash in all kinds of physical locations to keep the cash from their soon-to-be ex, including coffee cans and freezers. They may also have secret safety deposit boxes scattered at different financial locations, filled with cash, jewelry, and bonds.

Contact a Travis County High Asset Divorce Lawyer

If you are going through a high net worth divorce and suspect your spouse may be hiding assets from you, it is critical to your financial future to have an aggressive Austin, TX complex asset division attorney advocating for you. Call Powers Kerr & Rashidi, PLLC at 512-610-6199 to schedule a confidential consultation.

Source:

https://www.forbes.com/sites/catherineschnaubelt/2019/03/08/finding-hidden-assets-in-a-divorce/?sh=15ac6f216fd1