Divorce is a difficult time for everyone. But unfortunately, sometimes a spouse may try to take advantage of the stress and turmoil it causes you to make gains for themselves. This is often what happens in the case of asset hiding.
Why do spouses hide assets? How do they do it? What are the red flags you can keep an eye out for, and what can you do about it?
Increased spending and secrecy
According to Forbes, there are ways to find hidden assets. First, you want to keep an eye on your spouse’s reaction to requests for financial information. While sharing financial information is often a sensitive issue, a spouse should not feel complete reluctance to do so, especially during divorce. Extreme reluctance or outright refusal may serve as a red flag.
Is your spouse increasing their shopping budget? This could be a sign, too. Spouses often hide assets by buying valuable items like televisions or vehicles. They then sell or return the item after the divorce proceedings have finished. This way, they can collect the money again without ever having to divide it.
What about debts? Another red flag is an increase in debt repayment. People trying to hide assets will often enlist the help of close friends or family members. They will give away large sums of money, claiming they need to repay a debt. But after the divorce, the person they gave the money to will hand it back.
If you notice these signs, you might want to consider the aid of a forensic financial analyst. This can help you uncover any potential hidden assets.