3 Red Flags of a Spousal Attempt to Conceal Marital Assets
Under Wisconsin’s community property law, during a divorce, the court splits all marital assets (any acquired while the marriage is intact) equally. This means that, bar special circumstances, you receive exactly half of all shared property and debt.
However, many spouses try to avoid this distribution by hiding marital assets through tactics such as embarking on spending sprees or suddenly purchasing large quantities of cryptocurrency. As you undergo divorce proceedings, you need to be aware of this possibility and keep an eye for certain signs that may indicate its occurrence.
1. Abnormal Transfers
One major indicator is suspicious activity around shared accounts such as sudden withdrawals. The creation of new accounts and transfer of money into them is also a potential method of concealment, even if the new account is for your children. Changing the name on deeds, stocks, investment accounts or other assets to those of friends or family members or gifting them large sums of money is also a commonly employed tactic to conceal assets.
2. Random Large Purchases
If your spouse begins making strange purchases (antiquities, antiques, new cars, etc.) take note of them. Loading up debt on a credit card is also a red flag.
3. Tax Payment Irregularities
Another way individuals try to retain more assets for themselves during divorce is by overpaying their income taxes. By doing so, they hope to recover their money through tax refunds.
If you suspect that your spouse has assets hidden away, a forensic accountant may be able to help reveal them. It is illegal to conceal property during divorce, so you have the right to alert the court and seek legal recourse.