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What are the most common methods of hiding assets?

On Behalf of | Sep 23, 2022 | Property Division |

When going through a divorce, one of the biggest hurdles that a couple will run into is the division of assets. This is a time-consuming and stressful process and many find it the most difficult part of the split.

During this process, one person may try to hide assets which can cause additional complications, too. What are the most common methods of attempting to asset hide?

Lying about debts

Forbes talks about asset hiding in divorce situations. The most common tactics for hiding assets typically involve obfuscating the source of an income stream or making a person seem like they have fewer assets in general than they actually do.

For example, a person may pretend to pay off a debt to a family member or friend. However, they actually intend to collect that money back after the divorce gets finalized. In a situation where one spouse owns a business, they may create a false employee to pay and collect those paychecks to keep for himself or herself.

Transferring assets

Other methods involve transferring assets from one form to another. For example, someone could buy a car, new television or fine art. They intend to sell or return this later, which is why they do not spend their money on experiences like vacations or transportation. There are unrelated cases where spouses may do this simply to “burn” through their assets so they do not have to share.

Any method of asset hiding is illegal, so it is important for someone who notices changes in their partners’ financial behaviors and patterns to take quick action.