Every divorce is different, but similar issues tend to overlap from one case to the next. A spouse hiding assets or money during a marriage is a specific financial issue that can be found across a variety of unique divorce cases. A divorce becomes more complicated, lengthy, and expensive when financial issues appear. These financial issues can require extensive discovery or potentially require expensive experts to uncover the truth.
Spouses tend to hide assets with divorces that are planned for a prolonged period. A divorce that is brewing for years provides a shady spouse with greater opportunity to hide assets or money. Like most issues in life, failing to immediately identify and stop a spouse from hiding assets can grow into a major problem.
Here are some common ways that your spouse may hide assets during a marriage, in preparation for divorce.
NOT REPORTING TRUE INCOME
Not reporting true income is probably the most common way that spouses hide assets during a divorce. Hidden income usually takes place with spouses that own a business and do not have traditional w-2 incomes.
Does your spouse own a business and is paid in cash? Does your spouse own a bar, landscaping, construction, or any other company that receives cash payments? If so, it is likely that your spouse will not report their true income for child support or alimony purposes.
Another method of under-reporting income occurs when a business owner does not collect money owned until after the divorce is finalized.
Proving cash payments is incredibly difficult when the cash is not deposited into a traceable account. In these situations, the cost of discovery usually outweighs the benefit or result achieved.
FAKE DEBTS TO FAMILY AND FRIENDS
At times, spouses write promissory notes to family or friends for debt that does not exist. This fake debt can then be used to offset community property that the spouse receives. In other words, $10,000 in fake debt can be used to offset $10,000 in extra property.
Be on the lookout for fake debt to family and friends. In these cases, extensive discovery will likely be necessary to uncover whether a spouse received money that resulted in the promissory note.
TRANSFERRING MONEY OR PROPERTY TO FAMILY AND FRIENDS
This shady move may not be especially sophisticated, but it can be successful. At times, a spouse will transfer money to family or friends. A spouse may also transfer title to land, home, or vehicle to a family or friend. This transfer occurs during the marriage and before the divorce is filed and served.
This method is not sophisticated because it can usually be uncovered through the divorce process and financial records. With that said, New Mexico courts often refuse to address money or property that is transferred before the divorce is filed and served.
New Mexico judges often take a hands-off approach to this property and money because the transfer occurred before the court’s jurisdiction (power) attached to the case. New Mexico judges tend to only address the financial picture of the couple’s community property and debt at the time that the divorce is filed and properly served.
CONVERTING ACCOUNTS OR PROPERTY INTO CASH — HOW YOUR SPOUSE CAN HIDE ASSETS OR MONEY DURING DIVORCE
Cash is king. Cash is also slippery and almost impossible to track when it is not deposited into a traceable account. Be on the lookout for a shady spouse that is transferring bank accounts, or other assets into cash.
Your spouse may be selling property for cash. Often this cash is not deposited into a traceable account. Assets that are transferred into cash can greatly complicate a divorce – increasing the time and expense necessary to end the marriage.
SENDING MONEY TO FAMILY OR FRIENDS IN ANOTHER COUNTRY
New Mexico courts usually take a hands-off approach to money that is spent during a marriage that does not result in an asset. Doing otherwise could create a situation where the court is required to micro-manage every dollar spent during a marriage. Some money is “wasted” during a marriage – and waste to one person is reasonable to the next.
Money that is transferred to family or friends in another country creates an extra hurdle for New Mexico courts. Not only does the court lack jurisdiction over the third party, but an extra jurisdictional issue appears from the money being transferred to a different country.
HOW TO STOP YOUR SPOUSE FROM HIDING ASSETS OR MONEY BEFORE DIVORCE
Knowledge is power – so educate yourself on your account balances. When your marriage is on the rocks, immediately become aware and monitor your accounts. Be on the lookout for:
- Account balances and transfers;
- Large cash gifts to friends or family;
- Transfers to unknown accounts;
- Unexplained purchases; or
- Money spent that does not benefit the relationship (vacations, self-improvements, body enhancements).
A Lack of knowledge enables shady actions to take place before divorce. Become interested in your financial picture when divorce is on the horizon.
The financial actions taking place during your marriage can greatly impact your divorce. New Mexico courts generally do not address money that is spent without an asset. Also, a family court’s power to divide assets usually begins on the date that the divorce is filed and properly served on your spouse.
New Mexico courts usually lack jurisdiction (power) over actions that took place before your divorce is filed and served. This means that your judge may be powerless to do anything about the shady financial actions that take place before the divorce is filed and served.
For this reason, you need to vigilantly monitor your accounts when divorce is looming.
(505) SANCHEZ EXPLAINS HOW YOUR SPOUSE CAN HIDE ASSETS OR MONEY DURING DIVORCE IN ALBUQUERQUE, NEW MEXICO
Are you looking for an experienced trial attorney that can explain how your spouse can hide assets or money during divorce in Albuquerque, New Mexico? Matthew Legan Sanchez is an exceptional divorce attorney in Albuquerque, New Mexico. Sanchez has the experience needed to handle any divorce issue in Albuquerque, New Mexico. Call (505) SANCHEZ.
How your spouse can hide assets during divorce in Albuquerque, New Mexico
