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Why is your spouse giving away assets?

On Behalf of | May 23, 2023 | Divorce & High Asset Divorce |

Say that you’re reviewing your bank statements when you realize that your spouse transferred a significant amount of money out of your account. You ask them about it, and they tell you that they gave the money to a friend as a business loan or perhaps to repay a debt.

Bu,t why is this happening? You may be shocked to see the transfer, having never heard anything about that business idea or a former debt. 

This can actually be one of the red flags that a divorce is on the horizon. It may be an indicator that your spouse is not only going to file for divorce but that he or she is going to attempt to hide assets during that divorce process.

How the tactic works

Essentially, this is a tactic people use to hide assets when they have an understanding with the person who receives the money. That person knows they’re going to file for divorce. They are simply going to hold the money until the divorce process is complete. 

What this means is that your spouse probably won’t disclose those assets to the court and will not divide them with you. After the divorce, their friend will simply transfer the money back over, and your ex gets to keep 100%.

That being said, as you may imagine, this whole process is fraudulent. Your spouse is required to disclose all of the assets that they own, and they are not allowed to attempt to hide them by transferring them to a third party. If you see this happening, it’s an indicator that your divorce may become very contentious, especially in a financial sense, and so it’s incredibly important for you to know about all of your legal options.

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