Virginia is an equitable distribution state, which means that when spouses divorce, they will divide their marital assets and debts fairly but not necessarily equally. However, this is not possible if one spouse wants to protect certain assets from division.
Trust can be an uncommon thing between divorcing spouses, but you may not expect your soon-to-be former partner to go as far as hiding funds and other property from you. Still, it is best to be on the lookout for these signs.
Giving large gifts or money to family and friends
One of the most common methods of transferring assets from the matrimonial pool is temporarily giving them to family or friends. This can be in the form of loans, expensive gifts, business investments and more.
You may also notice that they are being secretive about these gifts. If they are trying to remove assets, they will likely try to hide their activities because they don’t want to have to get your approval.
Missing financial documents
Missing financial documents can be a telltale sign that your spouse is hiding assets. It may be possible that they are transferring money elsewhere or purchasing expensive items to sell after the divorce. They could also be trying to conceal their true financial situation.
When important papers like bank statements, tax returns or investment records are nowhere to be found, it’s often more than just careless record-keeping. This is especially true if your spouse is typically an organized person.
Purchasing expensive items that may be undervalued
Purchasing expensive items that may be undervalued, like art or collectibles, is another way some individuals use to hide assets. This is when a spouse buys valuable items using marital funds but intentionally underreports their value during divorce proceedings.
For instance, your spouse might buy a $50,000 painting but claim it is only worth $5,000. These items are hard to value accurately without expert knowledge, which makes it easy to conceal wealth. After the divorce, they can sell these items at their true value and keep the difference.
How a divorce attorney can help
One spouse hiding marital assets can affect the other’s equitable share. If you suspect that your partner is employing these tactics, consider talking to a divorce attorney as soon as possible.
Experienced legal counsel can help protect your rights during the divorce and ensure you understand what you are entitled to.
