Warning: Some People Try to Cheat the System
Divorce can be emotionally draining, but it's also a financial minefield. While most spouses disclose their assets honestly, some people may go to surprising lengths to hide money. These deceptions can lead to serious legal trouble and, in many cases, backfire dramatically. If you're going through a divorce, it is critical to be informed and vigilant. This blog will discuss some of the wildest ways people try to conceal money and how to identify them.
1. Vanishing Valuables
Some assets, like bank accounts, are easy to track, but others are
not. High-value items such as diamonds, jewelry, art, antique coins, furniture,
or gold bars can easily "disappear" if not documented. If you own or
suspect your spouse owns such items, take photos, make a list, and note their
estimated value before they go missing.
2. Digital Wallets
Online payment systems like PayPal or Venmo can be used to stash
cash. While transactions can be traced, they're often overlooked unless
specifically requested. If you or your attorney suspect this, you can subpoena the
records or request the account details during the Discovery process.
3. Cryptocurrency Confusion
Bitcoin and other cryptocurrencies can be hard to trace since there
is no physical bank, and some platforms operate anonymously. If you see
suspicious transactions in your financial records, like money going to
unfamiliar crypto exchanges, it might be time to hire a forensic accountant.
4. Tax Trickery
Some spouses overpay the IRS, tweak deductions, or delay tax
filings to get a hefty refund after the divorce. This shady strategy can be
uncovered by reviewing recent tax filings and ensuring nothing unusual is going
on with IRS payments.
5. Fake Debt and Friendly Loans
A common ploy is "repaying" fake debts to friends or family who
later return the money. These can be tough to catch unless you monitor bank
transfers and cross-check with loan documentation. If it smells fishy—it
probably is.
6. Delayed Income and Fake Salaries
One spouse might ask their employer to delay bonuses, commissions,
or raises until after the divorce. Others may work for offshore companies or
receive perks (like rent or travel) through creative accounting. Always compare
the individual's lifestyle with their declared income.
7. Hidden Royalties and Intellectual Property
Royalties from books, songs, patents, or acting work can be hidden
or undervalued. Don't forget to dig into any creative or professional work which
might be quietly generating income.
8. Sneaky Spending on a Significant Other
Gifts, rent, tuition, or travel expenses for a new partner can be
masked as business or personal expenses. If your spouse's credit card bills
seem unusually high, take a closer look at who may be benefiting.
9. Reward Points, Gift Cards, and Prepaid Cards
Frequent flyer miles, hotel points, and even prepaid gift cards can
add up to thousands of dollars in value. These often go unreported but should
be included in asset division.
Hiding money during a divorce isn't just dishonest, but it can lead to serious
legal consequences. In one extreme case, a woman lost all her hidden lottery
winnings to her husband after a judge caught her lying. Stay informed, ask
questions, and when in doubt, hire a forensic accountant. The more you know,
the better protected you are.