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What are some ways my spouse may be hiding money?

8100099_S.jpgIt has been said that money changes people, which holds true in Missouri and elsewhere. Whether or not you believe that money is the root of all evil, you must admit that the pursuit of it causes people to do things they may not have done otherwise. Things like hiding assets from your spouse. Do it during a marriage and you may wind up in divorce court; do it during divorce and it is illegal.

HuffPost shows that, among people with combined finances, three in 10 have hidden money or purchases from their spouse or partner. In fact, 7.2 million people in the U.S. own up to hiding banking and credit-card accounts. Here are some of the ways your partner may attempt to hide assets.

Transfer assets

With PayPal and a variety of online banking options, it is easier than ever to make money transfers. Doing it in small amounts over a period of time can be a strategy for building a nest egg.

Making loans to others

Loaning money to family and friends can certainly lower the amount in a savings account for reporting purposes. After the divorce is final, the "loans" can be paid back to your spouse.

Income tax overpayment

Overpaying an income tax return is another way to create a stash. It is simply a matter of instructing the IRS to use the money for the next year's taxes.

Under-valuing purchases

Investing in art of all types or expensive jewelry and reporting these assets at lesser value is crafty.  Selling these items at full value after the divorce gives the owner a tidy sum.

Pad expenses

For those who own or manage a business, or work as an independent contractor, inflating the cost of purchases and expenses gives them less income to report. If this is done on an income tax form, it is tax fraud.

It may be hard to resist doing some of these things, especially if you think your spouse has an "every man for himself" attitude about divorce. Your best strategy is to remain alert to the possibility that your partner may attempt some of these things.

This article is meant to provide information only. It should not be considered legal advice.

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Stange Law Firm, PC
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Lee's Summit, Missouri 64086

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