In an ideal world, everyone going through a divorce would be honest and upfront about their finances. Unfortunately, some spouses understand that marital property is going to be divided, and because of this, a person may try to hide certain assets from the other spouse during divorce. This is financial fraud, and it can result in an extremely unfair settlement for the spouse that is not hiding assets. The good news is that there are ways to protect yourself from these types of actions by your spouse.
Understand the Potential Types of Fraud
There are many different ways a spouse can try to hide assets during a divorce. A person may temporarily give friends and relatives property, cash, or securities in order to avoid dividing these assets. In other cases, a spouse may try to hide or misreport income in order to reduce his or her spousal maintenance or child support obligations.
Failure to fully disclose one’s income may also be considered tax fraud. This type of fraud may occur not only during a divorce, but after it is finalized as well. If this is done on a joint tax return that you and your spouse have signed, it can result in serious financial repercussions for you. Even if you had nothing to do with the fraud, you may still be held accountable, and you may face the same sanctions and penalties as if you had committed the fraud yourself....