Signs Your Soon-to-Be Ex May Be Hiding Money During Divorce

Filing for divorce in the United States has become increasingly straightforward, largely due to the adoption of “no-fault” divorce laws across all 50 states. However, while the legal process may be simpler, the financial implications can be complex, particularly in revealing jointly held assets and funds. As digital transactions have surged in popularity, some individuals may employ innovative tactics to conceal assets from their soon-to-be ex-spouses.

Financial advisors and divorce attorneys report numerous strategies that can indicate attempts to hide money during divorce proceedings. One common method involves spending on what appear to be legitimate expenses that can be reimbursed post-divorce. For instance, a Kentucky-based financial coach recounted the case of a client whose husband made unusual purchases during the divorce process, such as expensive services and sizeable payments to family members for babysitting and cleaning. This couple had an order to maintain existing financial arrangements until their divorce was finalized, which inadvertently allowed the wife to track these expenditures.

In another case, a husband incurred a ,000 charge for LASIK surgery just before the divorce was finalized. Speculation arose that he intended to submit these expenses for reimbursement through a health savings account, further complicating the financial landscape for his wife.

Many people falsely assume that hiding significant amounts of money requires moving large sums to undisclosed accounts. According to a family law attorney, these activities are often easier to detect through banking documentation. In contrast, small, routine transactions may go unnoticed yet add up significantly over time. One client discovered that his wife had systematically withdrawn over 0,000 from ATMs over three years, creating an inconspicuous pattern that masked her financial actions.

In certain cases, spouses may physically conceal assets instead of liquidating them. A financial coach in Oregon shared a story of a client who realized her husband had hidden their lawn mower and other possessions in a friend’s storage unit. By documenting the remaining items and asking about their whereabouts, she successfully proved to the court that her husband attempted to withhold joint assets.

Furthermore, some individuals may intentionally devalue assets during divorce negotiations. One client reported that her husband underestimated the value of his glassblowing equipment, which was appraised at approximately ,000, while he claimed it was worth only a few thousand.

The self-employed often find it easier to manipulate reported income, complicating financial negotiations. A divorce attorney detailed a situation in which a wife’s understated earnings from her beauty salon misrepresented their overall financial standing. Similarly, one client had to hire a specialized appraiser to fairly assess her husband’s intellectual property, which he had grossly undervalued.

To circumvent complications during potential divorce proceedings, experts advocate for prenuptial agreements, which can protect individual assets and clarify financial responsibilities.

Additionally, debt management can become another area of contention in divorce. Some spouses may accrue joint debt, leaving the partner to bear a heavier financial burden. Running up credit card bills for personal use while expecting shared responsibility can lead to contentious disputes during divorce negotiations.

Uncovering hidden financial assets can be time-consuming and potentially costly, often exceeding just legal fees. Yet, for many, the pursuit of fair asset division is deemed necessary. Realigning post-divorce financial health can ultimately lead to personal empowerment and recovery.

Media News Source