Asset division makes up one of the hardest parts of divorce for many couples, especially those who do not have to worry about child custody or support.
During asset division, one spouse may even attempt to hide assets to avoid dealing with this. How can you tell if that is happening?
Passive and active asset hiding
Forbes takes a look at the passively hidden assets first. These are assets that a person will hide simply by refusing to remind you of their existence. It is hard to prove that someone passively hid assets because they can simply claim forgetfulness in most cases. Common passively hidden assets include those that are easy to forget about, such as country club memberships or airline mileage.
Actively hidden assets, on the other hand, require a spouse to go out of their way to hide something. For example, if your spouse owns a business, they might fabricate a fake employee to write paychecks to. In reality, they keep that money.
Watching for red flags
If you suspect that your spouse may attempt to hide assets, keep an eye out for key red flag behavior. One of the biggest red flags involves a person’s spending and financial habits. Do they suddenly spend more or less than usual? It could indicate asset hiding.
Another red flag involves their willingness to share financial information. If they grow more furtive and secretive about anything ranging from tax documents to receipts, it could indicate that they are attempting to hide assets. Fortunately, you can act on these suspicions and determine if they actually are.
