3 warning signs your spouse is hiding assets during divorce

May 15, 2017 | Property Division

One of the basic functions of a divorce is dividing assets. In order for a fair distribution of assets to take place, you and your spouse must both disclose all your finances. Sometimes this does not happen, especially in high-asset divorces. Your spouse may attempt to hide valuable property or income to avoid splitting them in the settlement.

Do you think your spouse might be hiding assets? Here are some top warning signs to watch for that your spouse is being dishonest about finances.

1. You are not getting statements

One common strategy for hiding assets during divorce is having financial documents such as credit card statements, bank statements or tax documents sent to a different address. If you are not seeing recent statements in the mail and your spouse will not readily produce them, he might be hiding income.

2. Your spouse is overpaying the IRS or creditors

High-asset spouses sometimes overpay their taxes or credit card payments on purpose. This is because they will be able to get refunded after the divorce. If you are suspicious of this, review any credit card payments or tax documents that are available and look for signs of overpayment.

3. Your spouse colludes with family members or friends

Have you noticed any changes in the way your spouse’s family or friends interact with you? Is he making payments to them? If so, there is a possibility he has worked with them to create fake debt. Some people hide money this way, only to get the money back after the settlement is final.

These are just a few of many possible warning signs that your spouse is hiding assets. Getting divorced is already a stressful process, and noticing these red flags can raise the tension. If you notice any of these warning signs and are concerned about your family finances, consult a family law attorney for advice about the discovery process.