Divorces often become contentious. Spouses want to retaliate for things that happened during the marriage and believe the right time to do so is during divorce proceedings. However, each spouse must disclose information about their assets during the divorce so they can be divided accurately. 

Many people turn to a spectacular family law attorney utah for help with this matter. Doing so is a wise move. There are many ways a person may try to hide assets. Uncovering them will ensure they are held accountable for their actions. In addition, each partner will receive fair compensation. 

Hiding Assets

A person may attempt to hide assets in many ways. They hide cash by withdrawing it from the bank and claiming it was spent or receive payment for work they do in cash. 

Business owners might create fake employees and funnel false paychecks to a hidden account. They may also delay receiving payments or income until they finalize the divorce. 

At times, a person will set up a trust or gift money to family members or a friend. Once the divorce goes through, they then have this money returned to them. At times, a parent sets up a custodial account for a child so their spouse can’t get the money. 

Other ways to conceal assets include creating undisclosed accounts prior to the divorce. They then keep these accounts hidden during the divorce proceedings. Undervaluing assets and buying expensive items are other ways to hide cash during a divorce. 

The Penalty for Hiding Assets

Each state determines the penalties for a spouse who hides assets during a divorce. At a minimum, this person can be charged with perjury. Criminal charges may be filed, and the spouse who hid the assets may be required to pay attorney fees for the other spouse. These are only a few of the many penalties a judge may impose on any person who hides assets. 

How Can a Person Know When Assets Are Being Hidden?

A person might miss signs their spouse is hiding assets. If one spouse suddenly takes control of all financial matters or changes the way they withdraw and deposit money, the other spouse needs to be concerned. Overpaying debts is one way to hide assets, while making unknown payments is another. Any suspicious activity should be investigated when it relates to marital finances. 

Hidden and Forgotten Assets

People may unintentionally fail to disclose assets. Cryptocurrency and items in a safe deposit box are common ways an asset may be overlooked. Retirement accounts and vacation property are other assets that may be hidden or forgotten in a divorce. Don’t overlook intellectual property, memberships, and frequent flyer miles when disclosing assets. 

Steps to Take if a Spouse is Hiding Assets

A person should always consult an attorney if they believe their spouse is hiding assets. The attorney can then begin the discovery process and request information from the spouse. This may include tax returns and other financial documents. A forensic accountant may be hired to help with this task. 

Always work with an attorney if there is any question about whether a spouse is attempting to hide assets. This step should be taken even when a divorce doesn’t appear to be imminent. There is a reason the spouse is taking these steps, and the other partner needs to know why.

A family law attorney will help in determining the reason for this behavior and how best to locate any assets that aren’t being disclosed. Both parties in a marriage need this information at all times, so reach out for help if there is any question about the behavior of a spouse, whether the couple is in the middle of a divorce or still together.