3 Ways Your Spouse May Try To Conceal Assets In Divorce

One of the most common services for which family lawyers are often solicited is in regards to divorce. In divorce, one of the most awkward and uncomfortable aspects of the dissolution involves the division of assets. Unfortunately, in many marriages where substantial assets are involved, there is typically one spouse that tries to hide assets, cash, or other valuables from the other.

Although this is a fairly common tactic, there simply aren't that many places to hide assets or cash—at least not many places that haven't already been used in the past, and with which attorneys are quite familiar. This article discusses three of the most common strategies disgruntled spouses use to try and conceal their assets from the court.

Taking Off The Top

Where one spouse owns a business, or multiple businesses, he or she may try skimming off the top in order to make the business seem less profitable. By extension, this also conveys the idea that he or she is earning less income from the business.

Fortunately for you, an experienced family law attorney can generally surmise the accuracy of financial statements exchanged during the discovery process. Additionally, if necessary, your attorney may enlist the assistance of a forensic accountant to analyze the company's balance sheets and cash flows. In the end, this is one of the oldest tactics in the book and relatively simple for a skilled attorney to uncover.

Fraudulent Payments & Expenses

Another tactic that business owner-spouses often employ is with payments to non-existent employees. This might include writing checks to employees that were terminated in the past, or to persons that simply don't exist. Once the divorce has been finalized, the aforementioned checks are cancelled and individual is left with a hefty sum of cash.

Another method unscrupulous spouses use is in logging expenses for services that were never actually rendered. These can include everything from periodic maintenance on machinery and equipment, to financial or managerial consulting services. Both represent tasks for a forensic accountant if sufficient information is not available in discovery.

Stalling Business Contracts

You spouse may also intentionally delay pending business contracts in an effort to minimize the business's apparent earnings. If contracts have not been signed, than any income that stems from such agreements cannot be recognized on a balance sheet or income statement, and thus affects a business's overall value.

If you fear your spouse is engaging in any of the preceding behavior, it is imperative you contact a qualified family law attorney. They can help ensure that assets to which you are legally entitled are not concealed as a result of your spouse's deceit or shady business practices.

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