As you and your spouse go through a divorce, you’ll need to divide the property you own. You may keep separate property, such as money or items that you owned before the marriage, but you must divide marital property that you both have a right to.
Ideally, both you and your spouse will be transparent and honest, and the process will go smoothly. However, it’s important to be aware that some people may attempt financial fraud – especially if your spouse is unhappy about the divorce. Below are two examples to watch for:
1. Hiding assets
Your spouse may try to hide assets. For example, they could transfer money from a shared bank account into a secret overseas account and fail to disclose it during property division. Their goal is for you not to know the account exists in the first place, so you won’t claim your rightful share of the funds.
This isn’t the only way to hide assets. Some people might put money in safe deposit boxes, give it to family members, funnel it into a business they own, overpay credit card bills or taxes, or use other deceptive methods.
2. Dissipating assets
Another issue is if your spouse tries to dissipate—or waste—marital assets before the divorce. For instance, they may start spending frivolously in the months leading up to the divorce, not out of necessity, but as an intentional way to reduce the assets they must divide. Because they have a well-paying job, they may plan to recoup the money after the divorce, leaving you with less than your fair share.
If you encounter these issues, your divorce may become more complex. Be sure you understand the legal steps you can take to address financial misconduct.