You and your spouse spent considerable time and effort accumulating assets throughout your marriage. In addition to your primary residence, you own other properties, IRAs and an extensive investment portfolio.
If you are preparing for, or amid, a divorce, then you likely already know that Maryland courts will divide those considerable marital assets in a way that is deemed equitable. Unfortunately, it’s not unusual for one spouse to become greedy and want more than their fair share.
Ways to hide assets
There are multiple options for a spouse trying to hide marital assets, including:
- Offshore accounts
- Shell companies
- Setting up a Unified Transfer to Minors Act (UTMA) account
- Gifting money to family and friends or paying off non-existent loans
- Withdrawing and hiding cash
- Purchasing luxury items and undervaluing them
- Delaying bonuses and raises
Suspecting that your spouse of hiding assets from you is frustrating. But you’re not without resources. A forensic accountant is specifically trained to unearth what they are trying to keep hidden.
Where do forensic accountants look for hidden assets?
One of their primary methods is lifestyle analysis. They will look at your spouse’s spending habits and see if there are gaps between what they are spending and what they reported as income. If your soon-to-be ex is living way beyond their declared means, it may indicate hidden assets.
A forensic accountant can also trace financial transactions. They can track where money flows between personal, business and offshore accounts.
Tax returns also contain a treasure trove of information. Forensic accountants can go back several years and look for significant changes in reported income from year to year to determine if your ex-spouse has any undeclared income, such as interest or dividend earnings.
The forensic accountant can also testify in court. Hiding assets in a divorce is illegal, and a judge won’t look kindly on anyone trying to deceive them. They will likely hold the guilty party in contempt and give the other spouse a greater share of the marital assets.
It may be well worth the cost of adding a forensic accountant to your team if there are hidden assets to be found. Having experienced legal guidance can help you determine whether it’s the best choice for you.