Let’s face it: Divorce is tough. Besides the child custody and support arrangement, one of the most contentious issues divorcing couples deal with is asset division. Idaho is a community property state, meaning that both parties are considered joint owners of all the assets and debts acquired during their marriage.
Unfortunately, it is not unheard of for some spouses to try to gain an upper hand during a divorce by attempting to hide marital assets. While this behavior is unethical, wrong and downright illegal, it does happen.
Here are three subtle strategies spouses use to hide marital assets during the divorce process:
1. Unusual expenditures
Secret purchases of items like art collections, expensive jewelry, clothing and antiques can be used to hide assets. The motivation, usually, is to sell off these items once the dust has settled on the divorce so they can recover the money.
2. Stashing cash
To avoid leaving a paper trail while transferring money from the family account to other bank accounts, some spouses opt to withdraw and hide large sums of cash in secret locations like a secret safe deposit box. An unexplained withdrawal from the family account, while the divorce is underway or before, should always be a red flag.
3. Overpaying creditors
This is particularly common when the family owns a business. To keep money off the radar, one spouse may intentionally opt to pay more than they should to the business’ creditors. They may use the same strategy when paying taxes. This way, once the divorce is finalized, they will approach the IRS or the creditors for a refund.
It is not uncommon for a divorce to reveal the ugly side of people. Learn more about your rights and what you can do if your spouse is withholding assets during the divorce.