A new client walked into my office rather certain of one thing – she believed her spouse was in the process of hiding assets. Apparently, as happens all too often, the divorce was something he had in mind for quite some time, but was a total surprise to her.
I have found that people are generally pretty honest while going through divorce, except of course, when they are not. I do find that too many women trust their husbands when they shouldn’t. Looking for hidden assets is part of the work of your divorce team. To give you a head start, here are some of the places your spouse may have hidden assets.
- Antiques, artwork or hobby equipment that is overlooked and undervalued. Look for lush furnishings in his office.
- Collusion with his employer to delay payment of bonuses, stock options or raises until after the divorce.
- Income, often cash, that is unreported on tax returns and financial statements. Your life-style costs during marriage probably exceeded reported income, so document your cash expenditures.
- A custodial account set up in the name of a child, using the child’s social security number and your spouse as custodian.
- Debt repayment of a phony debt to a friend or family member, with the pre-arrangement that the friend will hold the money until after the divorce, then give it to your husband.
- Salary paid to a nonexistent employee from your husband’s business. The checks will be voided after divorce.
- Money paid from the business to someone close, such as father or girlfriend, for business services not rendered. The money will no doubt be given back to your spouse after the divorce is final.
- Delay in signing long-term business contracts until after the divorce.
- Expenses paid for a girlfriend, such as gifts, travel, jewelry, rent or college tuition.
- Investment in municipal bonds or Series EE Savings Bonds for which no interest is reported on tax returns.
The list goes on, but this is a good start to see if indeed your spouse may be hiding assets during your divorce. Take your time investigating his financial activities, and use financial experts to help. You will find that usually one piece of evidence will lead to another.
