Many couples find it hard to discuss financial matters. They often feel differently about how money should be spent or saved, and attempts to resolve those differences result in arguments. Sometimes, it’s easier to simply sidestep the issue. In many marriages, women avoid confrontation by ceding control of all money matters to their husbands.
The downside is that once a couple decides to get divorced, the woman has no idea whether her husband is hiding money from her. Disconnected from the finances, she is left completely in the dark. She becomes an unwitting victim.
This happens more often than people realize. Many divorcing spouses hide assets in an attempt to protect what they feel is theirs. Sometimes, they do it out of simple spite. The result? The spouse from whom assets are hidden is unable to get a fair divorce settlement, and may even be left without funds to make ends meet.
Below, we’ll cover 4 signs that suggest your soon-to-be ex-spouse may be stashing away money or other liquid assets. If you suspect that you’re in this situation, it is imperative to contact an experienced divorce attorney who can protect your rights.
Sign #1: Your Spouse Insists On Keeping Accounts In His/Her Name
In couples where one spouse handles the money, that individual might insist that the accounts are kept in his or her name alone. Rather than maintaining a joint account to which both parties have access, the money is placed in an account held in the controlling party’s name.
This might seem appropriate to many married people. Or at least, it may strike them as not worthy of concern. But when divorce looms, it provides cover for the controlling party to drain the accounts.
Sign #2: You Notice Large Withdrawals From Joint Bank Accounts
This is arguably one of the most telltale signs of financial trickery among married people. When one party withdraws a significant amount of money without telling the other party, there are two possibilities. First, the individual who made the withdrawal simply forgot to mention it to his or her spouse. Second, the individual had no intention of mentioning it.
In the latter case, the person may be trying to seize marital assets – specifically liquid assets – in preparation for filing for divorce. This makes a compelling argument for both husbands and wives to stay on top of their joint accounts, particularly when their marriage is in trouble.
Sign #3: Your Spouse Overpays Credit Cards
A strategy that some married people on the verge of divorce use to “hide” money from their spouses is to overpay their credit cards. For example, they might owe $600 on one of their cards, but send a payment for $3,000. They essentially turn the credit card account into a savings account – albeit, one that doesn’t pay interest.
Credit card issuers that receive overpayments rarely send the difference back to the cardholder. Instead, they simply credit the account. The cardholder can thus use his or her card, drawing from the excess funds rather than adding to the card’s outstanding balance.
Sign #4: Bank Statements Are No Longer Coming To Your Home
Many spouses considering filing for divorce will change the mailing address on the couple’s financial statements. Bank statements, investment account statements, and credit card statements are delivered to another address, typically the person’s workplace or a P.O. box.
This suggests deception. There are few reasons to divert statements other than to attempt to hide the information contained in them. Spouses who notice their statements are no longer coming to their home should immediately contact their banks, investment advisors, and credit card issuers to request copies.
When one party hides assets from the other, it places the latter party in an extremely tough spot. Not only is she denied access to the marital assets, but she may need the money to pay her bills and hire a competent divorce lawyer. Without funds, she is left with few options.
In addition, when financial chicanery occurs in a troubled marriage, it is the spouse who becomes a victim that must prove it. This is no easy task, especially without the help of an experienced legal advisor. For that reason, if you are getting a divorce and suspect your wife or husband is hiding money from you, consult a qualified divorce attorney about your options.