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How people may attempt to hide assets in a divorce

Tax returns, pay stubs, and other financial records may provide clues for people in New Jersey who are concerned about a spouse having an affair or hiding assets during a divorce. Changes in spending habits or movement of money around accounts could indicate an attempt to conceal something.

There are many ways people can hide extra money. One woman took out a little extra cash each time she went grocery shopping and accumulated $30,000 in a safe deposit box. A man created an entity of a company he already owned in another state and used the address of the woman in that state with whom he was having the affair. A man overpaid his estimated tax with the intention of filing after the divorce and claiming back the overpayments. His wife became suspicious when he failed to filed tax returns. In some cases, it can be difficult to identify where extra saving or spending is happening. One man always bought the same for thing his wife and the woman he was having an affair with, so there was just one charge on the credit card bill.

Schedule D tax forms deal with capital gains and losses and could indicate that money is being taken out of a brokerage account. Pay stubs may show an effort to reduce a person's take-home pay by investing in 401(k)s or other accounts.

During the discovery phase of divorce, people are supposed to be transparent about their finances, but this is not always the case. While some divorces can be resolved through negotiation, if one spouse hides assets, litigation might be necessary. Property division could involve splitting a number of complex assets, including real estate, valuable collections and business interests, so openness about finances is critical.

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