Going through a divorce is already stressful enough without people making it even harder. But unfortunately, if a spouse attempts to hide assets, that is exactly what happens.
In these cases, it is important to keep an eye out for potential red flags that could indicate asset hiding.
How hidden assets work
CNBC discusses digital asset hiding and how it works. Essentially, this is a newer form of asset hiding that utilizes cryptocurrency like bitcoin or other digital currencies.
A person hiding assets in this way will typically buy this stock with the intention of letting it sit for the duration of the divorce process. Then, after the divorce gets finalized, they will sell their stocks and regain that money. Or they may decide to grow the stocks and reap any reward without sharing it with their partner.
Red flags to watch for
Red flags typically manifest in one of two ways at first. This can include changes in spending behaviors, and changes in personality and behavior toward matters of finance.
Regarding the former, a spouse may start spending more to hide their digital trail. Regarding the latter, they may suddenly refuse to share any financial information no matter how small, because they have things to hide.
The goal of asset hiding is to deprive a spouse of their rightful share of an asset or the profits from an asset. A person hiding assets may do this for numerous reasons, including genuine fear of financial insecurity or simply wanting to spite their partner.
It is illegal no matter the reason, though. You can take legal action if you spot any of these signs.
