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How do people hide assets before divorce?

On Behalf of | Jun 22, 2022 | Divorce |

No one is allowed to hide assets before divorce because the court asks for a full disclosure of any marital property. It’s fraud not to tell the court what you own, intentionally, to keep your spouse from getting some.

But even if you understand this, it doesn’t mean your spouse isn’t going to try to hide assets. People do it all the time. What tactics do they use?

Using offshore accounts

For those of significant wealth, offshore accounts may offer a haven to hide the money where their spouse won’t be able to find it. In recent years, people started doing this with cryptocurrency. They can buy currency online and store it in a wallet on offshore servers. 

Using a safe deposit box

Another tactic is simply to make the transaction small. They know that you’d notice if they took $10,000 out of the bank, but you probably wouldn’t notice if they took an extra $20 at the ATM. There are cases where people will do this for years, keeping all the money in a safe deposit box as they do so.

Using a trusted friend

A similar tactic involves finding a friend, making the withdrawal, and giving off the money to the friend. This way, it doesn’t show up in the person’s financial records. After the divorce, the friend can return the money. The person who owns it never had to split it with their spouse.

Finding those assets

As noted above, your spouse is certainly not allowed to do this, even if they’re tempted. If you suspect that they may be, they are legal steps you can take to put a stop to it and locate those assets.