Sunday, September 30, 2012
While parties are contemplating or going through a divorce, it is not uncommon for an estranged spouse to start stashing money around the house, in a safe deposit box, or with trusted friends or relatives. By not keeping the funds in a bank or brokerage account, he or she is hoping their spouse will not know of the money's existence. Pay close attention to transactions that involve cash vaporizing into thin air: large ATM withdrawals, depositing checks but receiving a large amount of cash back, or the sale of assets with no paper trail or no deposit to known bank accounts. Understanding the common schemes that may be used to hide assets and income can help the spouse in the lesser financial position protect himself or herself in the divorce.