Asset hiding has occurred alongside divorces for as long as property division itself has existed. To that end, anyone can hide assets for any reason, and it is important for everyone going into a divorce to know how to protect themselves.
One of the best ways to do this is by understanding how asset hiding works. That way, it is easier to spot the potential red flags as they surface.
Common tactics for asset hiding
Forbes discusses some assets that often get overlooked without much active hiding. In this situation, a spouse may simply hope that their partner does not remember the assets, or do minimal effort to try hiding them. Examples can include country club memberships, certain stocks, airline mileage and more.
In other cases, people will go to more extreme lengths to hide assets. One common tactic involves transferring assets from one form to another. For example, a person may buy a new car or invest in bitcoin. They intend to sell their wares after the divorce gets finalized and get that money back. In the meantime, their new personal item is not up for division.
Creative asset hiding options
Other people have even more options. Business owners have created false employees before, as one example. They write paychecks to this fake person, but simply collect and save that money. Others will pretend they have to repay a debt, even roping family members or friends into the ruse. They “pay back” the debt, only to receive the money back after the divorce.
Any attempt to hide assets is illegal. Those who suspect their spouse of doing it should consider what steps to take next.