Tricks spouses use to conceal marital assets during divorce

On Behalf of | Aug 29, 2019 | Divorce |

Ohio residents who are going through a divorce or who have gone through a divorce may realize that a spouse trying to hide assets. The idea of the spouse trying to hide the assets being the husband is an antiquated one; in many marriages, the wife makes as much, if not more, money than the husband. In a good portion of marriages, the wife is the one who is responsible for financial decisions, including monitoring accounts and investments.

People need to be aware of behavior that could indicate their spouse is trying to hide assets in the time that leads up to a divorce. There are a number of ways money can be hidden. A common but often overlooked way is by overpaying creditors. A spouse may overpay the IRS or overpay a credit card company. After the divorce, they can then go back to their creditor and request a refund. The creditor becomes a safe haven for the money until the divorce is done.

Another tool that some spouses use is buying expensive art and then telling their partner that the art was purchased from a garage sale or from a thrift store. The hope is that the unsuspecting spouse will not want to keep the art in the divorce because they think it is worthless. Then, after the divorce, the spouse who came up with the scheme will be able to sell the art, thereby protecting their wealth.

Many people who are going through a divorce are doing it for the first time. They are unaware of the tricks that can be used by a spouse looking to hide money. This is why it is may be wise for a divorcing individual to contact a family law attorney. An attorney may be able to work with their client in helping them understand the laws pertaining to asset valuation, division of property and other financial issues that could arise during the divorce.