Going through a divorce in California is a complex undertaking, particularly for those who have considerable assets that have to be handled during the property division process. In this state, the community property method of dividing property is used. This means that property and debts acquired during the marriage should be divided equally.
Some people who are going through a divorce in this state may be tempted to try to hide assets so they can have a greater share of the marital property. This is illegal, so it’s not something that should be considered. However, it’s important for anyone divorcing to recognize that their ex might have hidden assets.
Methods of hiding assets
There are several ways that a person might try to hide assets during a divorce. Some of these might have been put in place long before the divorce was initiated. A few of the more common include:
- Transferring assets to third parties
- Using offshore accounts
- Undervaluing business interests
- Delaying bonuses at work
- Withholding financial statements
- Falsifying disclosures
- Using digital assets or cryptocurrencies
When there’s reason to believe that a person is hiding assets, it’s typically necessary to work with a forensic accountant who can review various records and determine if anything is amiss. If a person is found to falsify asset records during a California divorce, it can have considerable impacts on the outcome of the case. It’s critical that anyone who’s going through a divorce has proper representation to help minimize the chance of being taken advantage of during the legal end of the marriage.