According to the CDC, there are more than 600,000 divorces in the U.S. every year, making divorces more common than ever.
When going through a divorce, it is important to ensure that both parties are transparent about their financial situation. Some individuals may attempt to hide assets to gain an unfair advantage. Recognizing the red flags associated with hiding assets can help you protect your rights and assets.
Unexplained discrepancies in financial statements
Keep a close eye on financial statements, including bank accounts, investment portfolios and retirement funds. Look for unexplained or sudden changes in balances, withdrawals or transfers.
Overemphasis on cash transactions
If your spouse starts insisting on cash transactions for major expenses, it could be a sign they are attempting to hide assets. Cash transactions are harder to trace compared to electronic ones.
Be cautious if your spouse consistently undervalues assets during discussions or negotiations. This could involve downplaying the worth of properties, investments or other valuable possessions.
Inconsistent income reporting
Watch for any inconsistencies in reported income. If your spouse suddenly claims a decrease in earnings without a valid explanation, it may be an attempt to lower the perceived value of their financial worth.
Hasty or unusual financial transactions
Take note of any unusual financial behavior, such as selling properties or transferring large sums to family or friends without a clear reason. These actions may indicate an attempt to move assets out of sight.
Ownership transfers to third parties
Keep an eye out for any sudden transfers of ownership to third parties, especially if they are close associates or family members. This could be a tactic to temporarily hide assets until you finalize the divorce.
Hidden offshore accounts or investments
Offshore accounts and investments can be challenging to uncover, but they may hold significant value. Be vigilant for any signs or clues pointing towards such hidden assets.
Unwillingness to share financial information
If your spouse becomes evasive or uncooperative when it comes to providing financial documents, this can be a clear indicator that they are attempting to conceal assets.
Unexplained changes in lifestyle or spending habits
Pay attention to any sudden changes in your spouse’s lifestyle or spending habits. If they continue to maintain a lavish lifestyle despite claiming financial difficulties, it may be a sign that they are hiding assets.
Being aware of these signs can help you navigate the divorce process with clarity and confidence. If you suspect any foul play, it is important to seek appropriate advice and take steps to protect your financial interests.