Is Your Husband Trying to Hide Assets in Your Divorce Settlement?

 Posted on September 13, 2012 in Distribution of Assets

If you’re a woman going through a divorce, you need to ask yourself two tough questions: Could your husband be hiding assets? And if he is, does that mean you won’t get the divorce settlement you deserve?

Hiding assets during a divorce is sneaky, unethical and illegal – and it happens much more frequently than most women suspect.

Unfortunately, as you go through the divorce process, your husband may try to take advantage of the situation by hiding income and/or assets. How can you tell? What steps can you take to ensure you have an accurate accounting of your family finances?

Be on the lookout for telltale signs that your husband has some dirty tricks up his sleeve and make sure you work with a qualified divorce team to ensure you have the professional expertise and support required to receive a fair settlement.

You should also be aware of the most common unethical and illegal practices husbands use. If he wants to undervalue or hide marital assets he may:

1. Purchase items that could be overlooked or undervalued. Maybe no one will notice that expensive antique that’s now in his office. Were you wondering why he recently made several significant additions to his coin/stamp/art collection?
2. Stash money in a safe deposit box, somewhere in the house or elsewhere. Think through his recent activities. Does anything lead you to believe he is hiding assets in actual cash?
3. Underreport income on tax returns and/or financial statements. If it’s not reported, it can’t be used in a financial analysis.
4. Overpay the IRS or creditors. If he overpays, he can get the refund after the divorce has been finalized.
5. Defer salary, delay signing new contracts or hold commissions or bonuses so that income won’t be "on the books" during the divorce proceedings.
6. Create phony debt by colluding with friends or family to establish phony loans or expenses. He can then make payments to them, knowing he’ll get the money back after the divorce is final.
7. Set up a custodial account in the name of a child using the child’s social security number. He could also use his girlfriend’s social security number, making it difficult to locate the account.
8. Transfer stock or investment accounts into the names of family members, business partners or dummy companies. The assets can be transferred back after the divorce.

For more information on family law and divorce contact a professional divorce attorney at A. Traub and Associates. In the Lombard area contact them at 630-426-0196 and in the Arlington Heights area contact them at (847) 749-4182.