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Could your spouse be hiding assets?

On Behalf of | Dec 3, 2021 | Divorce

Under Kentucky equitable distribution laws, income and assets acquired during the course of a marriage are subject to division upon divorce. This impending division compels some people to secretively funnel money into their own pockets in an effort to keep it out of a divorce settlement. If you suspect your spouse is engaging in such unfair and unlawful tactics, here are a few warning signs to look out for.

Shared information is no longer shared

From checking accounts to credit cards, spouses often share finances and financial information. If you suddenly find yourself blocked from obtaining information about your shared finances, this is a significant red flag. To keep you in the dark, your spouse may:

  • Change passwords for online banking, investing and credit accounts
  • Keep you from seeing financial statements that arrive in the mail
  • Have mail sent to a new P.O. box you don’t know about

The law requires full disclosure of financial information in a divorce. There is nothing about your shared financial situation you don’t deserve to know about.

Income from self-employment dries up

Did your spouse have a side hustle that was doing well while your marriage was going well? Now that divorce is looming, has income from that business suddenly stopped coming in? A business’s fortunes can fluctuate naturally, of course, but another explanation is that your spouse has simply stopped reporting that income. This is another way of keeping money in his or her own pockets and keeping it out of property division proceedings.

Unusual transactions occur

People generally know their spouses’ spending habits. If you notice a sudden departure from the norm, it may be a warning sign that not everything is above board. Such events may include:

  • Large cash withdrawals
  • Purchases of artwork, jewelry and other items that can easily be sold after the divorce
  • A sudden interest in cryptocurrency

Anything that takes money off of a predictable paper trail and into muddied territory is a red flag. When divorce does arrive, your attorney may need to employ a thorough investigation to track down assets and income your spouse thought were hidden from view.