Asset division often proves one of the most difficult parts of divorce for many. To that end, some spouses may attempt to use it as a chance to hide assets.
But what red flags can help alert a person to asset hiding?
Digital asset hiding
CNBC discusses some ways that spouses hide assets in divorce. First, some spouses turn to digital means of hiding assets these days. This often comes in the form of cryptocurrency.
The spouse attempting to hide assets may purchase stock in cryptocurrency like bitcoin. They intend to sell their stock after the divorce, or even keep growing it to see how much worth they can get out of it. The idea is that their spouse will not know where to look for these assets if they know nothing about cryptocurrency, which many people do not.
Passive and active asset hiding
Next, spouses try to hide assets passively. This means they simply do not alert their spouse to an asset that they might have forgotten about. This includes things like airline mileage, country club membership and more.
Finally, some spouses will hide assets actively and without the use of digital currency like bitcoin. They will use more traditional methods of asset hiding, such as pretending to pay back debts to people who will return the money after the divorce.
They might also change their spending habits. Buying big-ticket items with the intention to sell them later is a popular tactic among people looking to hide assets, so keep an eye out for more spending.
