What You Need to Know About Spouses Hiding Income During Divorce
Unfortunately, more and more people are being accused of hiding income during divorce. Typically, it’s more common in situations where one or both individuals have accumulated a large number of assets or when someone has been thinking about divorce for a long period of time.
If you’re contemplating a marital split-up, don’t let yourself be a victim. Continue reading, to learn more about this problem and how to make sure it doesn’t happen to you.
What Assets Can Be Hidden
One of the most common types of hidden assets is cash. Paper money is easily used without any association with the buyer. Other common hidden assets are stocks, bonds, mutual funds and the cash value of insurance policies.
It’s also not unusual to see cash converted into personal property such as jewelry, collectibles, art, vehicles and antiques. Other examples of things that often fall into this scenario include gun collections, hobby equipment, and tools.
How are Assets Hidden
There are all sorts of ways that an individual can go about hiding income during divorce proceedings. This includes placing property in the possession of a relative, either in writing or via physical possession. Unfortunately, the relative doesn’t always necessarily know that they’ve become an accomplice in disguising assets.
Another method is for the individual to pay down credit card balances or debts to friends or family members. This creates what seems to be a legitimate use of the person’s assets.
According to DivorceandFinance.org, in cases where one spouse owns a business, the corporate entity can be used to conceal assets. By delaying lucrative business actions, one can lower the apparent value of a business before a divorce takes place.
How to Locate Hidden Assets
In cases where the value of a spouse’s assets cannot be determined, a court will impute, or take a guess at, income levels in order to make a determination, explains FamilyLLB.com.
There are also methods that an investigator can use to locate assets that a spouse has hidden. This investigator will go over many things including bank statements, credit card reports, lifestyle analysis, insurance statements, income tax returns and other public records.
Get the Real Facts and Work with a Legal Expert
For additional information in regard to the steps you can take to make sure your soon-to-be ex isn’t hiding income during divorce, take the time to contact us at Galbraith Family Law. Rest assured that our knowledgeable divorce attorneys are well-versed on the subject.