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How some spouses might try to conceal assets in divorce

On Behalf of | Aug 26, 2019 | Property Division

During a divorce, spouses are supposed to reveal all of their assets and debts for the purpose of property division. Signs that a spouse in Kentucky may be attempting to hide assets could include taking money out of a shared account, showing a sudden interest in cryptocurrency or even investing in art and antiques.

A person might also hide statements in an effort to conceal that money is being removed from accounts. Some people may try to transfer assets to other family members or place them in dummy corporations. Overpayment to the IRS or credit card companies can keep money out of circulation until after the divorce when the overpaid portion is returned. People may think that their cryptocurrency transactions are untraceable, but this is often untrue. Accounts may show transfers to trading sites. Some traders accept goods in lieu of money, so if there have been major purchases but no evidence of the product, this could also indicate cryptocurrency activity.

Some people may try to use assets to purchase valuable collectibles and then claim that the collectibles were picked up at a garage sale and worth little. People should also look at a spouse’s compensation on top of income, including commissions, bonuses, royalties and more. A spouse might try to have an employer hold these payments back until the divorce is final.

A person who has not been involved in managing the marital finances might be less likely to notice hidden assets during the divorce process. Therefore, the person may want to gather as much financial paperwork as possible, such as tax returns and account statements. A lower-earning spouse might also be concerned about finances after the divorce. The higher-earning spouse might be required to pay spousal support although it is often temporary. For example, it may only last until the lower-earning spouse retrains for a new job.