As divorce rates have surged, the pursuit of hidden assets has snowballed. In the past 24 months, the inquiries for divorce asset recovery have skyrocketed from 10-15% to over 50%. The growth of family asset classes has led to larger amounts being concealed. In this blog, we’ll delve into the world of hidden assets in divorce and the methods to uncover them.
The Growing Significance of Hidden Assets
The rise in family asset classes has brought complexities to divorce asset recovery, with larger amounts being concealed. Parties may attempt to gain financial advantages, making it crucial to uncover hidden assets to ensure fair settlements. Middle-class families face challenges concerning 401k and retirement funds, which can become entangled in the pursuit of hidden assets.
The Art of Concealment
Divorce parties may resort to various tactics, from transferring assets to a third party to prepaying taxes as a means of hiding assets. Basic mistakes are often made, such as quit claiming property to a relative, leaving a traceable record. The use of cryptocurrencies or transferring assets to a third party’s name while continuing to cover expenses are also common tactics employed in concealing assets.
The Stakes of Uncovering Hidden Assets
Uncovering hidden assets is imperative for ensuring fair treatment in divorce settlements. Hidden assets can amount to significant sums, often running into hundreds of thousands of dollars. Even amateur concealers can be detected by methods recognized by Forbes, emphasizing the importance of uncovering concealed assets to achieve fair divorce settlements.
Red Flags and Verification
Prepaying taxes can be a mask for hiding assets, and red flags on tax returns could serve as indicators of hidden assets. It is crucial to verify all assets independently, preventing over-reliance on the financial disclosure provided by the other party. Skilled investigation is necessary to identify hidden real estate, accounts, or assets held under others’ names.
The pursuit of hidden assets in divorce has become increasingly prevalent with the growth of family asset classes. Uncovering concealed assets is vital for ensuring fair treatment in divorce settlements. By recognizing red flags and employing independent verification, parties can mitigate the risks associated with hidden assets and achieve equitable resolutions.