Afraid Your Spouse May Be Hiding Money Before Divorce?

Are you afraid your spouse may be cheating financially? You may have good reason to be. Sexual infidelity isn’t the only type of cheating that can destroy a marriage. Hiding assets is a common problem in marriage as well as divorce.

According to a CreditCards.com poll, 31% of adults surveyed said they consider keeping a bank account hidden from a partner to be worse than physical cheating. A Survey in January 2014 conducted online by Harris Poll on behalf of National Endowment For Financial Education, found that one in three adults who have combined their finances in a current or past relationship admit to hiding assets from their partner.

According to Patricia Seaman, senior director with NEFE, “People commit financial infidelity because although they are sharing everything with their partner or spouse they believe that certain parts of their financial situation still should remain private,”

Signs Your Spouse May Be Hiding Assets

There may be a number of red flags that can cause a spouse to be suspicious of possible financial infidelity in a marriage. These can include things as simple as finding a receipt for a large purchase you don’t recognize. Maybe your spouse is defensive or overly vague when the topic of finances is discussed. The following are some of the most common signs of financial infidelity.

New purchases you were not aware of and which were not discussed.

You may notice that your spouse certainly has a new phone or iPad that you didn’t discuss. Maybe they’ve been going out a lot to fancy restaurants or wearing expensive new clothes or shoes. The problem is you haven’t discussed these expenses, and they’re not showing up on your bank account or credit card statements. How are these items being paid for?

Being overly concerned about getting the mail before you do.

If your spouse suddenly insists on getting the mail or going through it before you’ve had a chance to see it, this might be a cause for concern.

Your name has been removed from a joint account.

If you suddenly find that your name has been removed from an account or credit card for no reason, it could be a sign that something is going on they don’t want you know about.

Your spouse is engaged in a financially addictive and destructive hobby.

When someone has an addiction that is financially draining, such as playing the lottery or gambling, it can be cause for concern that they may be hiding much of the impact.

Hiding Assets In Divorce

Hiding assets in a marriage and going into a divorce is the most common way that people will try to keep what they believe is belongs to them. Full disclosure during divorce is critical to ensure that assets are divided fairly.

Under North Carolina law, both spouses in a contest divorce are required to disclose all assets and debts that exist as of the date of separation. These include both marital and separate interests. Full disclosure is critical to ensure that the marriage assets are divided fairly. When one spouse chooses to hide assets, it prevents a fair settlement. In a contested divorce, both spouses are required to sign an affidavit saying that they have fully disclosed all financial information. The consequences of lying under oath can be severe and include fines or penalties and even criminal charges. In the end it will end up costing the offending spouse much more than they were trying to save for themselves.

Examples of Assets Commonly Hidden During Divorce

  • Hidden savings or checking accounts.
  • Cash in safety deposit boxes
  • Undeclared taxable income
  • Jewelry
  • Travelers cheques
  • Valuable Collectibles (Examples include antiques, works of art, coin collections, or other valuables.)
  • Retirement Accounts

Ways People Hide Assets In Divorce

The following are some of the ways that people will attempt to hide assets during a divorce.

  • Physically hiding money or property.
  • Overstating debts.
  • Understanding the value of property.
  • Not reporting all income on their taxes or reporting higher expenses then were actually incurred.
  • Transferring money into undisclosed accounts or taking cash withdrawals prior to a separation.

In a contested divorce, your attorney can utilize a process known as discovery to require your spouse provide the necessary financial information and documentation. In some cases, an expert may be helpful in finding hidden assets. Forensic accountants are often utilized to look for discrepancies in the financial documentation in order to uncover hidden assets.