When spouses are planning on divorcing, they may take steps for themselves before they file the divorce papers. Moving money and hiding it for themselves is a big sign that a person is getting ready to divorce. But just how does someone hide money from their spouse?
Financial infidelity is a severe problem in a divorce, especially in high-asset cases. Knowing how a spouse could hide funds can help locate these funds for the sake of property division. Consider this list of common hiding tactics to determine if your spouse is hiding funds from you:
Filing seperate taxes
When spouses file separately, it can be very difficult to check their taxes. A spouse can regularly overpay on taxes, collect their refund payment by mail, and deposit it elsewhere. By doing this, a spouse may never notice their partner has been collecting and hoarding income for years.
When someone uses a card for a purchase, they can commonly get cashback by charging the card for it. The transaction history will typically not report the cashback request, just the final total of the purchase. A spouse could easily collect income this way and even physically hide it in your house or another location. In addition to collecting cash, a spouse may also collect prepaid cards and hoard them until they need them.
The money a spouse collects over weeks or months needs to go somewhere, and hiding cash around the house or elsewhere is not always reliable, so a spouse may open a separate account to deposit the funds into. It can be challenging to find these accounts on your own, but your divorce attorney may be able to help you track them down.
Do not take your assets for granted
Hiding money is far easier than many people might expect. If you are facing divorce, consider looking for hidden money. Even if you have no reason to look, you may be surprised by all the ways your spouse has hidden money from you.