When going through a divorce, it is important to focus on asset division. This is one of the most lengthy and difficult parts of the divorce process, but missing important red flags here could result in a serious loss of assets through something called asset hiding.
What exactly is asset hiding, and what are the red flags to watch for?
Forgotten assets
Forbes discusses assets hidden in plain sight. This is one of the most passive ways to hide assets. A person attempting to hide them does not even have to try, with the assumption that their partner simply will not notice.
Such assets include things easily forgotten as being assets in the first place, such as airline mileage and country club memberships. It can even include certain stocks.
However, in many cases, a spouse will try in a much more active way to hide assets. They will go out of their way to hide the asset itself or the source of it, so they will often leave several clues behind.
Changes in spending
For one, their spending habits may change. They could drastically increase or reduce their personal spending depending on what method of asset hiding they go for. For example, one method involves buying expensive items with the intention of selling it after the divorce to get the money back.
They may also grow much more protective over their financial information, not letting their spouse see anything at all, even if it is just a simple receipt.
Sudden changes in behavior and habits could serve as a red flag, especially if multiple signs start appearing at once.