Going through a high-asset divorce is often stressful and overwhelming. Emotions run high, and the financial stakes are more significant. Moreover, spouses are more likely to conceal assets to gain an unfair advantage.
Overpaying taxes
Some individuals may intentionally overpay their taxes. This tactic temporarily reduces their apparent wealth. Your spouse can simply file a refund for the tax overpayment to reclaim the money after finalizing the divorce.
Gifting assets
Your spouse may gift valuable items to trusted friends or family members with the intention of getting them back later. This method temporarily removes assets in their possession and lowers their net worth. Doing this may also help them reduce their alimony or child support obligations.
Buying things in other people’s names
Some spouses may try to hide assets by buying luxury items in someone else’s name. They may use a friend, relative or even a new romantic partner to make these purchases, keeping the assets off their financial records.
Cryptocurrencies
Cryptocurrencies offer anonymity and operate on decentralized networks. This makes them harder to track than traditional currencies or accounts. Moreover, digital assets are easier to overlook during asset division than other accounts and valuables.
Making up debts or loans
Your spouse may claim to owe money to friends, family members or fake entities. They can claim to use money from marital or separate accounts to pay the fake debts. In reality, they might transfer the funds to an offshore account under an alias or to a trusted friend’s account for temporary safekeeping.
Seek legal advice to protect your financial interests
Knowing common tactics for hiding assets can help you protect your financial interests and ensure a fair division. However, the methods above are just some of the many ways people may try to circumvent the law.
High-asset divorces require careful attention to detail so you can recognize other unfair tactics to hide assets. Working with legal professionals and forensic accountants may help you receive your rightful share of the marital assets.