Anyone going through a divorce knows how taxing it can be to divide assets. Even the most amicable couples experience tension when determining who gets what. Things can get downright ugly when one spouse hides assets from the other. Here are some of the most common ways people can hide assets during the divorce process.
Overpaying Taxes
A spouse attempting to hold on to a tax refund can direct the IRS to apply the current refund to the following year’s tax bill. The result is a larger tax refund sent to the other spouse well after the divorce is final. The lesson here is to keep a close eye on your taxes during your divorce and make sure you know where your refund is going.
Creating Fake Debt
Spouses can hide assets by creating phony loans with friends or family members. They make “payments” on these loans and debts. They get all that money back after the divorce.
Stalling on Income
Whether it is a raise, a commission, or customer payments, a spouse trying to keep income out of the reach of their ex can put their income on hold until they are officially divorced. Any income that hits the joint bank account is subject to division, so spouses that want to avoid giving up half will delay it as long as necessary.
Transferring Assets to Someone Else
A spouse trying to keep their ex’s hands off jewelry, art, or other valuable items can simply ask a friend of family member to hold on to it until the divorce is over. They can transfer intangible assets like stocks and bonds into a new account using the name and Social Security number of a loved one. When the divorce is final, they can simply transfer it back to themselves without giving up a penny.
Underreporting Income
If they do not report it, it does not exist – at least as far as the divorce settlement goes. A spouse trying to hold on to assets can refrain from reporting them on tax returns and financial statements.
Hiding it in Plain Sight
You may scrutinize the bank statements, tax returns, and credit card bills, but some spouses choose to hide assets the old-fashioned way. The easiest way to make assets undetectable is to keep them as cash – often hiding it where you least expect it.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Find Hidden Assets
Hiding assets during divorce is illegal, but it happens all the time. You may have suspicions, but do not know how to begin to track down what is missing. If the numbers just are not adding up and you believe that your spouse is hiding assets, contact a skilled Townson divorce lawyer. At Huesman, Jones & Miles, LLC, we look for red flags and investigate to make sure you receive everything you are entitled to after your divorce in Maryland. Call our offices at 443-589-0150 or contact us online.
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