Common Places Spouses Try Hiding Assets During Divorce
You would hope once you and your partner decide to file for divorce, the lies and deceit would end. Unfortunately, that is not always the case. According to a study conducted by the National Endowment for Financial Education, 2 out of 5 adults admit to committing financial infidelity in their relationships. Furthermore, that same survey found that 75 percent of the group interviewed said that financial deceptions have affected their relationship.
If you are heading into a divorce and facing property division disputes, our Collin County & Frisco divorce attorney has created a list of the five most common ways spouses try to hide assets from each other during divorce proceedings.
1.Friends & Family: Your husband could be scheming with his close friends or family to funnel money out of the marital accounts by purchasing false products from them or making payments for fake services. After the divorce is finalized, that family member or friend will likely pay your husband back the money he paid them for the fake products or services.
2.Custodial Accounts: Another way we have seen spouses attempt to hide money from another is opening up custodial accounts for your children using their social security accounts. If your spouse did this, they would be breaking many laws. While they would be hiding assets, opening custodial accounts irrevocably transfers the assets to your children meaning any money later removed by your spouse in a manner that does not benefit your kids is considered stealing.
3.Safe Deposit Box: Your wife could also try to store cash in a safe deposit box. This could be hidden somewhere in your home or at the office. Other ways spouses try to hide money is stashing it away in odd places around the house. Before the divorce is finalized, do a deep clean of the house. Shake out all the books, flip the mattress, and check your medicine cabinet for any expired pill bottles that might be housing something other than aspirin.
4.Luxury Purchases: Purchasing expensive artwork, furniture, and hobby items during the marriage that your spouse fully intends to resell is another way spouses hide assets.
5.Fake Employee Salaries: If your husband or wife owns their own business, they could be hiding assets by paying a fake employee salary. Running an audit for the payroll department will quickly reveal if these fraudulent checks were ever cashed or if they were voided.