Not surprisingly, assets are often hidden in divorce situations. Why – either just greed, or feelings of betrayal or anger at the need to share assets in a divorce, or the fear of not having enough after a divorce all motivate asset-hiding behavior.
In a divorce, the assets of the parties are divided. Under divorce laws in some states, they are divided equally and under divorce laws in other states, they are divided “fairly” or fairly. Equality often means the same to overworked divorce judges.
There is no way of knowing in advance whether your spouse has or will hide assets in a divorce. You know your spouse better than your divorce attorney and you need to inform your attorney about the possible concealment of your psouse assets. However, before you get to that point, there are some easy steps you can take to prevent your partner from hiding assets. Those steps include finding out all you can about your assets before the divorce.
Before you tell your spouse that you are considering divorce, you will need to compile and/or hoard documentation about all of your assets. If you’re not knowledgeable about your marital assets, it’s time to find out what’s out there. If bank and other reports come to the house, open it and write down the account number and balance.
If you have access to canceled checks, copy them as well. It is not uncommon for couples who are planning a divorce to transfer money to friends or relatives with the plan that they will return the money once the divorce is complete. So you should review those records and carefully scrutinize any major or suspicious transfers that occurred in the two or three years before or after filing for divorce.
Make sure you know where your copy of your income tax return is. If your spouse owns a business, make sure you have a copy of the multi-year tax return for the business. All of these documents can be copied and safely hidden somewhere outside the house if you need them. Taking these simple preventative steps can mean the difference in getting a fair settlement in a divorce. It will also be helpful for your divorce attorney to have this information in advance.
If your banking and other financial statements and financial records are not kept or mailed to your home, you will need to obtain these records by other means. You can contact the IRS for a copy of your signed tax return. Request a copy of the return and send it to a different address – either a friend or relative or your divorce attorney. If there’s a return you haven’t signed, such as a business tax record, you won’t be able to get a copy of the return from the IRS. If you have access to your spouse’s place of business, you may be able to find the tax return there. If you’re concerned that your spouse is hiding assets in a divorce, you really need to find the return and make copies of it – for years as possible.
If you have valuables, antiques, jewelry, artwork, or other collectibles in your home, catalog them all and if you have an appraisal, make a copy. It is not uncommon for these items to be lost or even pawned by a partner who needs more funds.
If you suspect your spouse is involved in divorce planning and withholding assets, notify your divorce attorney. Ask your divorce attorney to keep subpoena records of any other individuals or entities that could be involved in helping your spouse conceal the assets. If necessary, your attorney can use the services of an investigator to help obtain confidential financial records.