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Asset hiding in High-Net worth divorce cases?

August 17, 2022 | Asset Division, Firm News

It is no secret that dividing assets is often one of the most contentious parts of a divorce. When tempers run hot and emotions spiral wildly out of control, many people may even use this as a chance to try getting back at their spouse.

Such is the case with High-Net worth divorces, in which a person may attempt to ensure that their soon-to-be ex will not get their fair share of assets.

Hiding assets digitally

CNBC discusses the use of cryptocurrency to hide assets in a divorce, a relatively new development. To do so, a person will transfer their money into a cryptocurrency such as bitcoin. They will let that sit in their digital wallet or may even use it to make more money during the divorce process. Then, when the divorce gets finalized, they either withdraw that money or continue to invest it and not share the spoils.

Asset hiding through purchases

Of course, that is just one way to hide assets. There are more traditional ways to do so, too. For example, people have hidden assets in expensive items for years. They will purchase things like diamonds or the latest technology or cars. Then, after the divorce, they return or sell these items to regain their money.

False loan paybacks

Sometimes, a person even pretends to pay back a loan they took from a family member or friend. This person will hold onto the money until after the divorce, at which point they will give it all back, leaving the ex-spouse high and dry.

Of course, any form of asset hiding is illegal, so those who suspect their spouse of committing this deed should take action.

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