Alabama adheres to an equitable division policy when it comes to splitting marital property. During a divorce, financial transparency helps ensure a truly fair division.
However, some spouses try to conceal their true value by hiding assets. Certain signs can signal individuals that there is something sneaky going on so they can investigate.
Sudden changes in financial behavior
When a spouse suddenly alters how he or she spends, begins storing money in unknown locations or makes unexplained withdrawals, it should raise suspicions. Such actions may be attempts to hide funds. Similarly, transferring properties or assets to friends or family members is a red flag because it takes them out of the distribution process and makes the owner look like he or she owns less on paper. A newer way of hiding assets is using cryptocurrency, which currently caps at $1.4 trillion according to CoinMarket Cap, so a spouse suddenly purchasing a bunch without displaying any prior interest is also a potential sign of something shady going on.
Unexplained debt accumulation
Excessive or unexplained debt accumulation can be a strategy to minimize the appearance of available assets. A spouse suddenly obtaining a bunch of loans or placing many expensive purchases on a credit card may signal such a tactic.
When a spouse hides assets or tries to reduce his or her on-paper value, he or she cheats the other spouse out of a rightful share of marital property. He or she makes the division process inequitable. A forensic accountant can uncover funds in offshore accounts and other concealed assets. Individuals in the process of divorcing who feel their spouses have assets stored away need to inform the judge, who can launch an investigation.
