An Advocate In Family Law Cases

How people hide assets during divorce

On Behalf of | Dec 12, 2023 | Firm News

Hiding assets during divorce is illegal and unethical. It can lead to unfair property division, disadvantaging one party. Some people going through a divorce find different ways to do this.

Here are four examples:

Using cryptocurrency

Cryptocurrency is becoming a popular platform for people to hide money during divorce. It’s anonymous – one of the qualities that can make it difficult for one to discover their soon-to-be ex-spouse is hiding money. 

But experienced forensic investigators can find a hidden crypto wallet.

Transferring assets to another person

During divorce, a party may transfer their assets to a family member or a friend. Since the assets will no longer be in their name, a judge may not consider them during property division. Then, after the divorce is final, the family member or friend will return the assets.

People who use this trick typically do it slowly and systematically to avoid raising suspicion. Assets may be transferred to multiple people too. 

Creating fake expenses

Some people conspire with friends or family members to fake expenses. For example, they may state they owe a friend a loan or need to repay a gift given by a family member during the marriage. They will pay these fake expenses and receive all funds back after the divorce.

This tactic is mostly used by people who own businesses and independent contractors.

Lending money to loved ones

A spouse can reduce their assets significantly by lending money to loved ones to get it back after the divorce is final. They can also do this by gifting loved ones with expensive gifts – they will resell the gifts after the divorce. 

If you believe the assets reported by your spouse are inaccurate, seek legal guidance to investigate the matter before the court initiates property division.