Family law and divorce cases have more hidden assets than any ponzi scheme or fraud case. Both sides are looking to maximize their retained property in the divorce, and take action to minimize their disclosed assets and income. The average divorce case has an estate value of $580,000. All parties to a separation will be intending to obtain a maximum settlement for funding of their post-divorce lifestyle.
There are 8 common methods of concealing and reducing assets in a divorce:
- Diverting money to hidden accounts
- Concealing ownership of assets into another name
- Declaring lower value of tangible assets
- Misrepresenting current income
- Excluding known future income
- Non-reporting of past diminished value
- Falsifying bank and tax records
- Use of affair as diversion of assets
The methods used by parties to a divorce are very often performed poorly. Divorcing spouses are not experienced financial scammers with experience and skill in fiscal fraud. The techniques deployed are frequently amateur in execution. Once discovered, they can bring deserved assets back to the marital property settlement, and demonstrate bad faith to the court process.
Get good legal advice from your attorney, and do not accept any financial disclosures or court discovery production at face value. Verify everything and expect that there is more to the story.