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Asset concealment can hurt your finances post-divorce

On Behalf of | Jul 30, 2024 | Property Division

During a divorce, a court may determine how to divide the property between you and your soon-to-be ex-spouse. However, your spouse may attempt to conceal the true extent of their wealth to secure a more favorable share of the assets.

This practice known as asset concealment, is unlawful and can adversely affect your financial situation post-divorce. There are signs that may indicate it is happening.

How your spouse could try to conceal assets

Because North Carolina is an equitable distribution state, the court may consider your individual finances when dividing your marital assets. If you observe any of these financial red flags during your divorce, your spouse might be trying to hide their wealth:

  • Erratic financial behavior: Your spouse may engage in rampant spending and mysterious asset transfers to hide assets from the court. They might make large, extravagant purchases, suddenly empty bank accounts, or suddenly sell off high-value assets. Such behavior could indicate that your spouse is attempting to keep these assets from being divided.
  • Lack of transparency: Another red flag is if your spouse misrepresents their financial situation. They might lie about their wealth, restrict your access to their financial records, or destroy important documents. This can affect how the court views their finances.

These behaviors could influence how the court divides your marital assets, potentially resulting in your spouse receiving a larger portion while you end up with less. Understanding the impact of asset concealment is crucial as it could significantly affect your financial situation after the divorce.

Asset concealment can be devastating to your finances. However, by being proactive and vigilant, you can prevent this from occurring and protect your assets after a divorce.

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