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How do spouses hide assets?

On Behalf of | Nov 4, 2022 | Divorce |

When going through a divorce, most people will tell you that they had the most trouble when dividing assets.

Unfortunately, some people can and will make it even harder for their ex-spouse than others. This can happen due to a variety of reasons, but the possibility of hidden assets ranks among the most common.

Defining asset hiding

Forbes discusses the impact of hidden assets. Asset hiding happens when a spouse attempts to hide either the source of an asset stream or an asset in its entirety. They do so to have the asset omitted from the divorce process because they want to keep it to his or herself, without having to share any of it with their spouse.

Asset hiding can take numerous forms. In the current day, digital asset hiding is popular. People may do this by transferring one asset into bitcoin or other digital currency, which they then keep in a digital wallet. This wallet will often remain undiscovered or unchecked by their spouse, letting them keep its contents.

Physical asset hiding and transference

Some people also hide assets physically. They may actually keep a stash of physical cash somewhere like their job or in their vehicle, ensuring that it is left out of their digital trail.

Others hide assets by transferring them from one asset form to another. For example, someone may purchase cars, fine art, electronics or other expensive things in order to later return the item and regain the money they spent.

Any form of asset hiding is illegal, however. Spouses who suspect it can take action to get their fair share.