When you go through a divorce, it is likely that you and your spouse will harbor some resentment or anger toward one another. In many cases, these negative emotions can lead to other problems, such as one spouse trying to hide sources of income specifically to spite the other.
Why is it such a big deal for a spouse to hide a source of income, though? How does this impact your bottom line?
Methods of hiding assets
Forbes looks into the phenomenon of hiding assets during divorce. Though this can occur in any divorce, it is often more common among couples with large amounts of assets. This is due to the fact that a spouse who is hiding assets will often feel more comfortable with their chances if they know you have a lot of information to comb through.
There are many ways to hide assets, such as buying expensive items to return or sell after the finalization of the divorce. However, another common method involves hiding sources of income. This often happens if your spouse has a form of income that follows mainly cash-based transactions, which even financial forensic experts sometimes have trouble tracking.
Hiding cash-only income
If they make money under the table in a cash-only endeavor, they will likely simply refuse to report it. In fact, they might already do so in order to avoid paying taxes on it, which is a different but even more severe crime with even larger penalties.
If you notice potential red flags that might indicate a spouse trying to hide assets, it is important to act quickly to get your rightful share.