Episode 55 of the Divorce and Your Money Show discusses the five warning signs that your spouse might be hiding assets from you.
Ignorance is not bliss. To make sure your divorce is fair, the most important key is to ensure that you and your spouse are informed and knowledgeable about all the finances between you. You may have never been involved or interested in the financial affairs of your household before the divorce, but now that you are divorcing, financial information is vital.
Not knowing what is going on with your household or your family’s business finances will affect your settlement. Today’s episode goes through the five signs that your spouse may be hiding assets or income. Keep an eye out for these signs, and be sure to report them to your team before a settlement. Working with a good divorce attorney and financial team will empower you to make sure the divorce is equitable and fair to both parties.
Key Learning Points
A good divorce attorney should know these five signs of financial sabotage:
- Financial Information Is Hidden from You. If you have never seen financial statements or do not have passwords to your financial affairs, it could be a sign that your spouse is intentionally hiding money.
- Your Spouse Does Not Communicate about Finances. If your questions are not answered, or you have signed documents without knowing what they are, it is another opportunity for trouble.
- Spending Does Not Match Your Earnings. If your reported income is lower than your lifestyle spending, there may be hidden income sources.
- Sudden Changes to the Business Plan. If you run a family business, watch for Sudden Income Deficit Syndrome (SIDS)—or new employees that you never meet.
- New People Are Entering the Business. New business associates (e.g., friends or family) can be signs that assets or income may be gutted before the divorce settlement.