Business Owners and Hiding Assets in a Divorce
One of the more challenging aspects of divorce is dividing your assets and property fairly between yourself and your spouse. Unfortunately, some individuals attempt to conceal assets in the divorce to prevent their spouse from having any claim to them. One tactic that may arise is using a business to conceal income. An individual may even create a business that their spouse knows nothing about.
If the numbers of your marriage do not add up, it may be time to dig into the records and look for other businesses.
Potential Tactics for Hiding Business Assets To Be Aware Of
If your spouse has a business, this could be a potentially easy outlet for concealing certain assets. Spousal concealment involves failing to disclose assets that would be considered marital property, meaning you have the right to an equitable portion of them.
A few unethical asset concealment strategies to be aware of include:
- Underreporting income because it was reported in a different business
- Reporting income in another person’s name
- Creating a secret LLC or business to store assets
- Misrepresenting the business valuation to conceal assets
If your spouse has their own business, be wary of their financial behaviors during the divorce. They will need to disclose their business income and assets, and misrepresenting either one could significantly complicate your divorce process.
Examples of Suspicious Financial Behaviors in a Divorce
If your gut tells you that your spouse is hiding assets in the divorce proceedings, speak with an attorney about your options. Here are a few examples of financial behaviors that may raise concerns:
- Your spouse has no issue paying bills, but claims they have no income.
- Your spouse’s reported income or assets are much lower than you would expect.
- You realize the business has been paying the bills.
- You know that your spouse has spent significant amounts of money lately, and their financial disclosure does not reflect this.
Even if the financial disclosure looks accurate, you can trust your gut about potential concealment or dishonesty. Your attorney can help you investigate their finances more closely.
Protecting Your Right to Marital Assets
If you are suspicious of hidden assets in your divorce, start by analyzing all financial documents and searching for other businesses that your spouse may have concealed from you. When the numbers don’t make sense, something else could be at play.
If your divorce proceedings have already moved to a court hearing, inform the judge that you believe your spouse is concealing assets. Asset concealment is both unethical and illegal, and the court will want to investigate this matter.
Seek Support From Karen Ann Ulmer, P.C.
Finding out that your spouse is hiding assets in a divorce can leave you feeling concerned that you will not receive your fair share of the marital property. An experienced divorce attorney can help you navigate this process and advocate for your rights. Request a consultation with Karen Ann Ulmer, P.C., today at (866) 311-6082 for legal guidance and support.
