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How to find out if a spouse is hiding assets in divorce

On Behalf of | Feb 26, 2019 | Divorce

Some soon-to-be ex-spouses in Minnesota may take drastic measures to hide assets in a divorce. While this is usually done to subvert the property division process, following a financial trail can also lead a spouse to the discovery of an affair. This was the case for a woman who found her husband had created a second entity for his New York company in Florida. The company never did business in Florida, but he used the address of the woman with whom he was having the affair as the business address.

In another case, a woman became suspicious when her husband failed to file their tax returns for two years. She discovered he had been overpaying estimated tax. His plan had been to wait until after the divorce and get the money back when he filed a single tax return. However, it is not necessary to have a business or an elaborate plan to hide assets. One woman put away $30,000 in a safe deposit box simply by getting extra cash each time she went to the grocery store.

There are several other ways separating spouses may conceal assets. For example, putting more money into a 401(k) or health savings account can reduce take-home pay. However, pay stubs can reveal whether someone is using this as a way to underreport income and avoid paying more in child or spousal support.

If hidden assets become a major issue during a divorce case, litigation might be necessary. A family law attorney could help make sure that the property division process is handled in a fair manner.

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