Divorces can be relatively simple in some cases, but they can also become incredibly complex if there are certain complicating factors present. Valuable assets and multiple streams of income are among the potential factors that can make a divorce more difficult to navigate.
Those with marital estates that may include investment accounts, multiple real property holdings, businesses and complex compensation packages may have a more difficult time completing the divorce process than those who share a minimal amount of property. When the stakes are higher, the incentive to engage in financial misconduct may be greater. One spouse may try to hide assets to deprive the other of their interest in those resources. Locating those hidden assets is crucial to an appropriate divorce outcome. What are some of the ways that people may hide valuable property before filing for divorce or in the early stages of divorce?
1. Funding secret accounts
Hidden resources are often financial. Some people divert a portion of their paychecks to a private bank account. They may have engaged in that behavior for the duration of the marriage. International accounts, investment accounts and digital assets are all ways of hiding income by preventing it from reaching shared marital accounts.
2. Physically moving assets
Another tactic used to misrepresent the extent of the marital estate involves physically removing assets with substantial economic value from the marital home or shared storage spaces. One spouse might move some of their jewelry or wristwatches to a safety deposit box.
They might open a storage unit where they hide collectibles, tools and housewares. Some people even ask their friends and family members to take possession of certain assets until after the completion of the divorce process. By moving assets out of the marital home, they hope to prevent their spouses from identifying those assets as part of the marital estate.
3. Undervaluing various resources
Some people try to hide marital property in plain sight. They include assets on their disclosure forms but intentionally misrepresent the value of those assets.
One spouse might have collectibles or wardrobe items worth tens of thousands of dollars that they claim are only worth a few hundred dollars. They might undervalue real estate holdings and businesses by significant amounts so that they have less to share during poverty division proceedings.
Those who try to find and value hidden assets can ask the courts to consider their spouse’s financial misconduct as they proceed with the property division process. In some cases, it may be necessary to partner with a forensic accountant to identify and value hidden assets or secret bank accounts. Recognizing that financial misconduct is a common issue in complex divorces can help people push for fair outcomes.
