Kentucky divides marital assets based on equity during a divorce. This means the court considers numerous factors to determine what is a fair, but not necessarily equal split.
However, certain individuals try to skirt this process by hiding their assets or obscuring their financial value on paper. Specific red flags can signal the potential concealment of marital property.
Sudden financial habit changes
Spouses who suddenly begin to spend a great deal without explanation may be trying to lower the amount of liquid assets they have. Similarly, a person randomly accumulating debt without a clear reason may be an attempt to obscure his or her true financial value. Taking money out of investment accounts, overpaying taxes and gifting large amounts of money or valuable property to friends and family members are also potential red flags.
Unexplained accounts
Stashing funds in offshore accounts is a common tactic to keep money out of the court’s reach. Certain countries will keep account holder’s information completely private. Cryptocurrency accounts, with an overall market value in the trillions according to CoinMarketCap, are also a popular avenue of asset concealment due to their digital and ungoverned nature.
When a spouse hides assets during a divorce, he or she deprives the other spouse of his or her rightful share of marital property. Individuals who suspect shady dealings can inform the court, which will investigate. A forensic accountant can also help uncover any hidden money or property. It is important to demand full financial transparency, including the revealing of accounts and important documents, to help ensure a fair split of shared property.