A spouse hiding or dissipating assets during divorce can lead to unequal property division. One spouse may be at a financial disadvantage. If you are going through a divorce, it’s important to be adequately informed about these two tactics to take action early.
So, how can you tell if your spouse is hiding or dissipating assets?
Hiding assets
Hiding assets during a divorce is done secretly. Thus, it may not be easily noticed. A spouse can do this by:
- Putting money in offshore/secret accounts
- Not including an asset on their list and denying that it exists
- Undervaluing properties/businesses
- Transferring assets to a third party
- Asking their employer to defer income/bonuses to reduce reported income
- Concealing valuables in a safe deposit box
If you notice anything unusual, you should be concerned. For example, when your soon-to-be ex-spouse is reluctant to share financial documents. With a court order, a professional can help you access and review every financial record to spot inconsistencies.
Dissipation
Dissipation of assets is essentially wasteful spending of marital assets. It can be more noticeable. Examples of ways people do this include:
- Gambling
- Withdrawing large amounts from bank accounts without explaining
- Taking out new loans/credit cards
- Overpaying taxes
- Buying luxury items, such as a vehicle, art and jewelry
- Going on expensive vacations
- Giving loved ones expensive gifts
- Spending huge amounts of money on their new partner
- Intentionally letting assets be compromised, for instance, not paying the mortgage so a property can be foreclosed, failing to maintain a property to decrease its market value or causing major business losses to reduce its value
If your spouse is wasting money, the court can give an order to stop them from moving assets.
Hiding and dissipating assets can lead to a significant financial struggle for one spouse. You need to investigate the case and obtain solid evidence to protect yourself.