Liquidating assets before divorce
So if you are the out spouse, it's time to get more plugged into your finances.
So, to help you get into the mind of a soon-to-be ex with their mind on taking you to the cleaners, here are 10 ways I could hide assets and income from my spouse in a divorce:1. The beauty is that the cash goes under the radar because the total charge shows as groceries.5. If I am friendly with the boss, I would tell him or of my forthcoming divorce and ask that they delay any promotions and set any raises/bonuses aside until after it was finalized.6. If I closed a big deal and was anticipating a large commission payment, I would let my employer know that I wanted to delay receipt for ... Forget about employer retirement accounts or stock options. How could I be blamed for forgetting about a defined benefit plan, ESOP or stock options I own through my employer? The above tactics are child's play compared to strategies available when you own your own business.8. It wouldn't be difficult to delay invoicing clients until after the divorce.
Although accounts receivables would be accrued assets, this is easier to hide than cold hard cash.9. "Yes dear, I'd love to give you more money but my business is struggling ..." thanks to the fact that I've created fake expenses, pre-paid vendors, added my cousins to payroll and started paying friends for their "consulting" expertise.10. Have you seen the new $100,000 piece of art in my office? I'd buy all kinds of personal items and charge exotic vacations to my company, which would quickly soak up any profit that could be divided in the divorce. People hiding assets in a divorce is a real and pervasive problem, but those who do it can only get away with it if their spouse stays in the dark.
The race to the courthouse, like the race to the bank, may no longer be an emergency.
The change does not affect applications for spousal support, child support or eventual equitable distribution of marital property; it simply means that there is an automatic stay to prevent hiding or liquidation of assets.
During a bitter divorce, one or both parties might try to hide marital assets to benefit financially from the breakup and punish their spouse.
If you are thinking about hiding assets, take a moment to reflect on what you're considering. If you get caught -- and the odds are you will -- penalties can run the gamut, from a property settlement that allocates a much greater amount of the marital assets to your soon-to-be ex-spouse, contempt of court or criminal charges for fraud or perjury.
What can you do if your spouse has dissipated marital assets during your divorce, leaving nothing to be divided in the property settlement?
Unfortunately, some husbands will go to extreme lengths to guarantee that their wives will get nothing in the divorce.
In an equitable distribution state, the court starts with a presumption that marital assets should be subject to a 50/50 split, but allows parties to introduce evidence that they deserve a bigger share based on various factors, such as their large contribution to marital assets or the lesser earnings prospects of a spouse.