One of the most complicated parts of a divorce proceeding in New Jersey is addressing the divorcing couple's finances. In some cases, one of the spouses moves money around, which essentially robs the other party of his or her financial freedom in a divorce situation. A spouse can hide assets in multiple ways prior to filing for divorce.
According to a recent study, three in 10 adults who have combined assets with their spouses have hidden their purchases or assets from their partners. One common way in which a spouse might hide assets from the other person is to transfer money from a couple's joint account to his or her individual account. Sometimes spouses transfer money to friends in a slow and systematic way over time.
Other ways of transferring assets before getting divorced include setting up life insurance policies with the help of financial planners. In other cases, a person might decide to overpay his or her taxes and simply tell the IRS to use the overpaid amount for the next tax year. This allows the person to show fewer assets in his or her accounts. Sometimes spouses might also delay the receipt of large payments, such as huge commissions, or contracts until after their divorces have been finalized.
Hiding assets while going through a divorce proceeding in New Jersey is immoral and illegal, but it does happen. Building relationship with a CPA or financial advisor may help a person to remain educated about his or her finances as well as those of the person's partner. Appropriate legal guidance may also help the individual to fight for his or her fair share of assets and make educated financial decisions during the divorce proceeding.
Source: Huffington Post, "Be Smarter: 8 Ways Your Spouse Can Hide Assets Before A Divorce", Roxana Maddahi, April 20, 2016