Hiding Assets: Warning Signs He Might Be Keeping Secrets

 Posted on February 14, 2015 in Division of Property

In any divorce situation, division of property is an extremely important consideration. Whether accomplished by means of an agreement between spouses or by litigation and the decision of the court, the marital assets must be addressed, in most cases, before the divorce decree can be finalized. As with any compromise, a property division negotiation may leave one or both partners feeling a bit cheated or that the other partner ended up with more than was deserved.

In some cases, it can seem very clear that a marriage is deteriorating and headed for divorce. Such a situation may drive one partner, often the one with more control of the family’s finances, to manipulate the situation to unfairly benefit in the event of divorce. While either partner may be tempted to take advantage of the circumstances, it is often the husband who may attempt to hide cash, disguise income, or undervalue property. Hiding assets is not only detrimental to an equitable divorce settlement, it is also illegal.

Jeff Landers is a divorce financial analyst, author, and contributor to Forbes whose focus is primarily women involved in financially complicated divorces. He suggests being vigilant and aware of your family’s financial situation because if your husband is hiding assets, there may be warning signs. While it may be too late to prevent it from happening, knowing what to look for can help you better prepare for what lies ahead.

Statements Stop Arriving

You do not need to have an active role in the family finances to recognize when financial statements arrive in the mail. If you start to realize you have not seen a bank statement, credit card bill, or other regular account report in a while, it is possible they are being sent somewhere else and there may be a reason for it. Many people have migrated to online statements for many accounts, and while that may be the case with your husband but it is worth discussing.

Defensiveness

When you approach your husband about finances, is he open and forthcoming or does he become guarded and secretive? Suspicious behavior or atypically angry responses may indicate there are some things that he is not telling you. He may be embarrassed that a legitimate investment is not performing as well he hoped, for example, but it could be that he has financial secrets he does not want you to know.

Unusual Financial Decisions

An unexplained change in income or seemingly odd payments may be causes for concern. Reductions in salary, for example, are occasionally necessary, but if he is suddenly making significantly less without a reasonable justification, it is possible he has deferred salary or bonuses until a time where he may not have to share them with you. Alternatively, if he is determined to keep money from you, another way to do so is by intentionally overestimating and overpaying tax liabilities. He could possibly be "storing" money with the IRS that he intends to recover by refund later, presumably after the divorce.

Depending on his creativity and your level of financial involvement, there are innumerable ways in which your husband could be hiding assets. If it is occurring in relation to your impending divorce, you need qualified representation with your best interests at heart. Contact an experienced Arlington Heights family law attorney at A. Traub & Associates today for an evaluation of your case. Our attorneys are committed to providing the legal protection you deserve throughout the divorce process.