What if my spouse is attempting to hide property?
Often one spouse might attempt to undervalue or disguise a martial asset intentionally with the specific thought in mind of life after divorce. While suspicion and proof of these kinds of activities are two very different entities, there are ways in which to protect yourself. The most prominent counter-measures would be not only to start compiling detailed financial records complete with accurate asset assessments or valuations from the moment the decision to separate is made, but also to hire a specialized professional known as a forensic accountant. A forensic accountant is one who is an expert at tracing properties, evaluating financial reports, and assessing values for businesses and investments. Should things get really ugly, he or she is also one who makes a very good witness in a court of law.
Another way to eliminate any potential problems would be to familiarize yourself with some of the most frequent tactics used in such economic warfare. For example, in anticipation of divorce and a reluctance to share, a spouse may persuade an employer to delay delivery of a bonus, stock option, retirement benefit, or pay raise until after such time as a divorce is final. In this way, such monies would not be considered in the formal division of the marital assets. To prevent this, you may wish to take the deposition of your spouse’s direct boss or payroll supervisor. However, should this prove unsuccessful you may need to enlist the services of a Forensic Accountant.
Other methods have been known to come in the form of payments to nonexistent employees, with the checks magically becoming void after the Date of Divorce. Sometimes monies are paid from a business account to somebody with close personal ties, such as a father, brother, or uncle, for services never actually performed. Naturally, the monies are returned after the divorce is final. Or, custodial accounts appear in the name of a child, under the child’s Social Security Number, for money to be parked until such time as the coast is clear.
There could be delays in signing any formal business contracts, lucrative only by coincidence, until after the time is right. Although in some cases there is nothing inherently illegal about this, if the intent is to hold down or lower the value of a business, in the eyes of the court this is considered asset hiding. The help of a forensic accountant would almost certainly be required here.
It is not unwise to document all antiques, artwork, hobby equipment, gun collections, or tools that are quite often overlooked by the other spouse. If possible, have a professional appraiser establish a value in writing. Pay a visit to the office and notice if there are any lush furnishings, paintings, or collector-level carpets around. Pay attention to the monthly billing statements to see if the lifestyle is exceeding the normal income. Somebody may be stockpiling for the future.
Other means would be skimming cash off the top from a business owned, "debt repayment" to a friend for an alleged outstanding obligation, or perhaps expenses paid to a new girl or boyfriend for items such as gifts, travel, rent, or tuition for college or other educational classes (that will never be attended, with the monies refundable upon student withdrawal by a specific date). Another prominent method would be cash kept in the form of traveler’s checks, although you may be able to discover the existence of these by tracing bank account transactions.
Again, you may wish to employ a forensic accountant. While a forensic accountant obviously does not work for free, the money spent in fees could prove to be well worth it. In some cases, the old adage, better safe than sorry, could be a most prevailing and rewarding concept.