The unfortunate reality is that people are not always honest in divorce. Technically, everyone is supposed to be completely transparent about the assets that the family owns. They disclose these assets to the court, which then assists with property division.
But people sometimes try to hide assets so that they can keep a larger percentage for themselves, keeping the money away from their ex. Here are some ways that they may do it.
Giving money to family members
One of the most popular tactics is just to transfer money to a family member, who can then give it back after the divorce. People may try to make excuses for why they did this, such as claiming that they’re giving them a personal loan or paying off an old debt.
Buying and hiding possessions
In some cases, people will try to secretly buy expensive possessions and not disclose them. They may also buy things that they think will be undervalued, such as artwork. In some cases, people will put aside cash or even gift cards that they’ve purchased to keep them out of property division.
Making overpayments to creditors
Finally, a slightly more complex tactic is to overpay debts that are due. This typically generates a refund check in the future. For instance, someone may pay $10,000 too much for their credit card bills or their yearly taxes. They’re just hoping that they can get divorced and get the $10,000 refund check back after the divorce has concluded.
As noted above, people are not allowed to hide assets in divorce. If you feel that your spouse may be trying to do one of the things noted above, take the time to look into your legal options.
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