Asset hiding has been going on as long as asset division itself. People engage in this activity for various reasons, though it is illegal regardless of the reasoning behind it.
Still, anyone going through divorce should understand what asset division is, how people carry it out and their potential reasoning for it.
Why does asset hiding happen?
Forbes discusses some assets that end up hidden in plain view. Assets also end up hidden in complex or more covert ways, too. Any way a person can hide assets, they will try to do so.
First, why do people hide assets? Generally, a person wants to ensure that their soon-to-be ex-spouse will not get anything unnecessary from them. Bitterness and anger often pull people into acting irrationally, wanting to prevent their ex-spouse from getting anything. Others genuinely fear losing their standard of living if they give too much to their ex.
How does asset hiding happen?
Next, how do they hide assets? The method differs from person to person but generally follows the same concept. For example, some may purchase expensive items like electronics or cars with the intention of re-selling or returning them after the divorce finalizes.
Others use their digital wallets to do this, investing in cryptocurrency like bitcoin and keeping their gains without ever sharing it. Some may even try to pay back false debts to friends or family, intending to collect the cash again after the divorce gets finalized.
Regardless, as mentioned, any attempt to hide assets is illegal. If anyone suspects a spouse of attempting to hide assets, they should take action to prevent any unfair financial division or losses.