The process of divorcing a partner might widen the emotional chasm that already exists between them. As a result of the dissolution of the marriage, some partners will go to tremendous measures in order to cheat the other partner out of their rightful portion of the assets in the divorce settlement.
When going through a divorce, it’s not uncommon for spouses to try to hide the exact extent of their money by employing both novel and tried-and-true methods. Warning signs alert a divorce lawyer to the possibility that one of the parties is not being transparent and is seeking to undervalue oneself in order to minimize their monetary commitments.
It is possible for a divorce to involve hidden income and assets in any situation, but high-net-worth divorces are where these strategies are most commonly employed. When divorcing spouses willfully withhold financial information or assets from one another, they put themselves in jeopardy of facing severe repercussions for their actions.
Personal Value In A Divorce
Every facet of a divorce case, such as child support, spousal support, the division of property, and the allocation of debt, is heavily dependent on the combined and individual financial resources of each spouse. If a person has less assets, they will have to make a smaller contribution overall. Some people are unable to resist the allure of reducing their wealth in order to bring their tax burden down to a more manageable level.
Common Strategies That Can Be Employed To Hide Or Lower Wealth
For as long as there have been married couples, there have also been partners who try to conceal the value of assets. The following are some of the strategies that have been utilized on several occasions in order to sidestep the divorce procedure.
The existence of unaccounted for money can be inferred from gaps between income and expenditures.
Investigators that specialize in divorce cases examine all of the parties’ assets and expenditures using financial accounts and documents. If the research reveals that annual income is $500,000 and annual expenses add up to $300,000, then there ought to be evidence that the remaining $200,000 is held in a variety of accounts or investments. The existence of funds that cannot be accounted for raises the prospect of hidden accounts or covert purchases of property.
Another technique to conceal money is to give it as presents to close associates, including acquaintances, relatives, and lovers.
It is possible for one spouse to be unaware of the actual amount of money that the other earns. If during their marriage they are able to meet their financial obligations and requirements, there may be no reason for them to look any farther. In reality, the other person is benefiting from the significant purchases that the partner makes. The cost of renting an apartment for a girlfriend is covered by the funds. A sister who is starting a business is offered several thousands of dollars in assistance. There is the option of “temporarily” handing over collectibles and other valuables to a close friend for safekeeping until after the divorce has been finalized.
For the purpose of building a clandestine nest egg, covert bank accounts are used.
The distribution of money to a number of accounts can be streamlined through the use of direct deposit. The majority of each paycheck is transferred into a joint checking account, but the other twenty percent is put into an individual savings account for one of the partners. Safe-deposit boxes are able to store a wide variety of valuables, including jewels, money, passports, and account numbers.
Trusts have the ability to conceal the real owner of items.
The person legally loses ownership of their assets if they are transferred into a trust. The property is held in trust by the organization. Before getting married, putting valuables into a trust is an excellent strategy to protect individual property in the event that the couple subsequently decides to split. The issue arises when one partner places marital property into a trust that essentially prevents the other partner from acquiring any portion of the property. Trusts can be contested in court by attorneys who have sufficient legal expertise.
New ways to conceal monetary value include cryptocurrencies and non-traditional assets (NFTs).
These days, hiding money requires high-tech equipment. It is possible to make purchases of digital currency and assets using an anonymous account. On a decentralized network, cryptocurrency is stored in digital wallets accessible online. It can be difficult to link a single individual to a digital money such as Bitcoin, Ethereum, or Verge. Non-fungible tokens, also known as NFTs and digital art that is linked to a blockchain, are another method that is becoming increasingly popular for concealing financial resources.
By following the paper trail, one can uncover many different attempts to conceal money. When it comes to discovering buried capital, some of the most important responsibilities are played by forensic accountants, property appraisers, business valuation experts, and other professionals.
The experienced Divorce Attorneys of the Justice Legal Group make use of a wide range of specialists, experts, and investigators in order to unearth buried assets in divorce cases that take place in the state of New Mexico. Please get in touch with us if you have any reason to believe that your partner is not being truthful about their current financial situation during the divorce process. Call 505-880-8737 to schedule your confidential consultation.