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Watch out for financial transfers before a divorce

On Behalf of | Mar 6, 2024 | Divorce |

If you’re getting divorced, it’s important to keep an eye on your finances in the months preceding the divorce. This is not an instantaneous process, and you and your ex-spouse will have many different details to sort through.

One problem is that people will sometimes attempt to hide assets. If you see any significant transfers that are outside of the norm, these could be an indication that your spouse is attempting to do so. You need to know what steps to take to fight for the assets that you deserve during property division. 

Giving money to a friend or family member

For example, many people hide assets by giving them to people they trust. Your spouse may give their sister a “loan” or repay a “forgotten debt.” But they really know that their family member will just hold the money for them until the divorce is concluded, when they will transfer it back. They’re not giving someone a loan; they’re just manipulating their asset levels. 

Putting money in hidden accounts

Another tactic that people sometimes use is to transfer money to accounts that they then fail to disclose. For instance, maybe your spouse has overseas bank accounts for business. They also handle most of the finances for the two of you as a couple. They may assume that you don’t know that the overseas account exists, and they will transfer money out of your main account. They are simply hoping that you do not notice, so it’s important to remember that you do have a right to that money.

If your divorce leads to complicated financial situations like this, it’s important to understand exactly what legal options you have.