Going through a divorce can be an emotional rollercoaster for any couple. However, for a high-asset couple, the process can be further exacerbated by financial disputes. One of the most troubling issues that can arise during divorce proceedings is the concealment of assets by one spouse.
Individuals may wonder about the reasons behind this deceptive behavior. A spouse may hide assets with the desire to gain financial advantage. Others might have deeper psychological motivations behind hiding assets before divorce. When a spouse deliberately hides financial assets, it can greatly affect the fairness of the property division process. Recognizing the possible motives for this behavior can help individuals safeguard their financial interests during a divorce.
The desire for financial gain
Most spouses who conceal assets do so to secure a larger share of the marital wealth. They may feel entitled to more than what the law allows or may believe that their contributions to the marriage justify keeping more assets for themselves. Individuals who suspect their spouse might be hiding assets should look out for the following:
- Hidden bank accounts
- Undervalued property
- Temporary transfer of assets to friends or family members
Spouses who desire to gain financial advantage hide assets to reduce the apparent value of the marital estate. Unfortunately, this leaves unsuspecting spouses with less during the settlement. This type of behavior is illegal, but it can be challenging to detect without legal help.
Fear of financial instability
Other spouses might conceal assets due to the fear of financial instability after the divorce. Divorce is a life-altering process that often leads to a significant change in lifestyle. Some individuals may be anxious about their financial future and feel the need to hide some assets to secure a financial reserve. High-asset individuals may especially worry about maintaining their current standard of living.
This fear-driven behavior can stem from a lack of confidence in the divorce process or a belief that the courts may not distribute assets fairly. It can also be fueled by concerns about child support or alimony obligations. By hiding assets, a spouse may try to protect themselves from what they perceive as potential financial hardship.
Understanding the motivations behind asset concealment before a divorce can help individuals protect themselves and help to better ensure a fair settlement. By staying informed, seeking legal help and remaining vigilant, individuals can navigate the divorce process more effectively and work to protect their financial future.
