Divorce is a challenging and emotional process, and one aspect that often adds complexity is the division of assets. While transparency is morally imperative during this time, some spouses may attempt to conceal their financial holdings.
Recognizing signs of potential asset concealment is important for a fair and equitable division. With that in mind, there are some major red flags to watch out for during your divorce.
Sudden changes in financial behavior
If your spouse undergoes abrupt alterations in their financial habits, it may be a sign of hidden assets. This could include unexplained withdrawals, increased secrecy or sudden changes in spending patterns. Pay attention to any deviations from established financial routines.
Altered financial documents
Review financial documents meticulously during a divorce. An incomplete set of records or suspicious alterations could indicate an attempt to obscure assets. Be vigilant for missing bank statements, altered income reports or any unexplained modifications in financial paperwork.
Unexplained debt or loans
Hidden assets may manifest in the form of undisclosed debts or loans. If your spouse appears to be shouldering financial burdens that were not previously discussed, it could be an attempt to redirect attention away from undisclosed assets. Scrutinize credit reports and be alert to any unexplained financial obligations.
Complex business structures
For spouses involved in business, the complexity of corporate structures are exploitable for hiding assets. Look for any sudden changes in business arrangements, undisclosed partnerships or convoluted financial dealings that might be concealing assets within the business framework.
Statistics show that 90% of divorces end as uncontested, but experts find that many start as being contentious. If there is contention in your relationship as you approach your divorce, it may be worth your effort to watch for signs of hidden assets.