Hiding assets before divorce is one way that soon-to-be-exes might try to take advantage of the situation so that they wind up with more money. By hiding the amount of money you have, there is less to split with your ex. If you are concerned that your partner might be hiding money, it’s important to reach out to an attorney to figure out the best way to protect yourself financially. You might notice that funds are missing from accounts, or that accounts seem to be dwindling quickly. Or you might find some tax discrepancies. Unusual purchases or withheld income can also be signs that your ex is monkeying around with your finances. Hopefully, if you notice any of these warning signs, you’ll be able to take action to protect yourself.
Warning Signs that Spouse is Hiding Assets Before Divorce
Missing Funds
This one might seem obvious, but if you notice that your accounts seem unusually low or are dwindling quickly, it might be a red flag that your spouse is hiding assets. They might be transferring funds to an account that you don’t have access to. Or, they might be loaning money out to friends or family. These people will then pay it back after the divorce. By hiding some of the money in your accounts, there will be less to divvy up between the two of you.
Tax Discrepancies
Another warning sign that your spouse could be hiding assets is if they are meddling around with your taxes. They might overpay for income taxes and ask the IRS to use the money for future years. This way, the IRS will have money they can apply to their taxes after you no longer file jointly. If they are an independent contractor or business owner, they can also overestimate business expenses. These are tax-deductible and will decrease their net profit. This means less money to divvy up while they pocket more. This is a form of tax fraud.
Unusual Purchases
If you notice your spouse purchasing unusual amounts of things like antiques, art, or jewelry, it could mean they are hiding assets. These are items that hold their value well. Your spouse might downplay their worth so that they aren’t included on your assets list. Or significantly undervalue them. They can sell them after the divorce is final.
Withheld Income
Finally, if your spouse seems to be delaying payments on large contracts or commissions, it can also be a warning sign that they’re hiding assets. They might be asking their company to hold off on paying a bonus or commission until after the divorce is final. Then, they can pocket all of the money without having to split it.
Hiding assets is a dirty move, but unfortunately, in contentious divorces, it can happen. To prevent this from happening, it’s best to reach out to an attorney. Do this as soon as you think divorce might even be a possibility. They can help you protect yourself financially and look for warning signs that your spouse hiding assets. Be on the watch for money leaving your accounts or inconsistencies with your taxes. In addition, if your spouse is making odd purchases or doesn’t seem to be getting paid for large commissions, it can be a warning sign. It’s important to always have a general knowledge of your overall financial health as a couple so that your partner cannot hide assets from you.