It is certainly true that your spouse shouldn’t attempt to hide assets during a divorce. Doing so would mean that you may not get the assets that you actually deserve. This is illegal, as both you and your spouse will be asked to make a full disclosure of your assets.
That being said, you do want to look for red flags that may indicate your spouse is trying to hide assets as your marriage ends. Here are three potential ways they may do it.
1. Exaggerating debts or creating fake ones
Debt can sometimes be used as a way to hide assets, such as simply claiming that a business has more debt than it actually does. In other cases, a spouse may invent a fake debt that they need to “pay back,” but they’re just using it as a way to transfer assets to someone else.
2. Underreporting income
Your spouse could also attempt to report that they earned less money than they actually did. One tactic people use to do this is that they “forget” to report commissions or bonuses, merely reporting their base earnings. But they may have earned far more than that, and those other earnings may also be marital assets.
3. Setting money aside
If your spouse has been planning to get divorced for some time, they may have taken steps to put money in other locations. Some people will purchase gift cards and then not disclose them. Others will get a safe deposit box, take withdrawals at the ATM, and slowly increase the amount of cash assets in the box.
Are you worried that your spouse is going to do this during your divorce? At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-665-3903 or by contacting us online.
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Mia Poppe, Esq.