New York Divorce Lawyer & Attorney : Clement Law Firm : Family Law Serving Manhattan, Westchester County, Brooklyn, Queens, Bronx, New York City

In this time of economic turmoil, I anticipate the divorce rate will increase.  When money is available to fund a comfortable lifestyle, spouses are more forgiving of minor transgressions. But, when there is less cash available, it is more difficult of overlook a spouse’s foibles and failings.

So, as the marriages begin to unravel, the inclination of some disreputable spouses may be to hide or stash away marital assets. Divorce 360.com offers some tips to Know When your Spouse is Hiding Cash. Some of most common methods of hiding money are:

 

• moving money from a joint account to an individual one;
• putting assets into a family trust, offshore corporation or shell corporation;
• buying collectibles or other items that retain value but are not liquid;  
• purchasing insurance policies, cashiers checks and savings bonds.
• investing in certificate "bearer" municipal bonds or Series EE Savings Bonds. (These do not appear on account statements because they are not registered with the IRS.) or 
• colluding with an employer to delay bonuses, stock options, or raises until a time when the asset or income would be considered separate property.

The article identifies some of the indicia that a spouse may be attempting to hid assets. Tell tale signs of wrong doing include:

 
1. Significant and unexplained changes in the value of assets.   Unexplained changes could be a signal that something untoward has happened.  

2. Does your spouse's income suddenly seem lower? Some individuals can manipulate how they take their income, for example, deferring income. 

 

3. If your spouse travels internationally he could have hidden foreign ban k accounts   

4. Are family members whom your spouse previously ignored now being lavished with gifts? Or has your spouse decided to suddenly invest in a family business venture?

 

The common sense best protection –  stay fully informed about the marital finances. 

 

• Email This
• Print
• Comments (1)
• Trackbacks

A recent study discovered that 20% of divorcing couples tried to conceal assets or income from the spouse.

As reported in the Telegraph:

The study - by the accounting firm Grant Thornton, which surveyed 100 family lawyers - found that husbands were much more dishonest when a marriage crumbled.

In cases where assets had been hidden, 88 per cent involved men concealing wealth from their wives. Just two per cent involved women hiding assets. In the remainder of cases, both partners tried to conceal wealth from one another. . . .

"Men are seeing these huge settlements and they are terrified," she said. "If they think a marriage might break down, more and more men are panicking and trying to put their capital into trusts and offshore accounts or buy assets in a third party's name so that they are hidden from their wives.”

As a result of this trend, finding hidden assets as part is a divorce has become an important aspect of many divorce cases. 

And now for the shameless plug - I will be chairing a program aptly titled, Finding Hidden Assets- What Every Divorce Bankruptcy & Commercial Litigator Needs to Know at New York City Bar on April 24, 2008.

The distinguished facility of this program includes:

•  Fred Abrams, an attorney and author of the New York Asset Search Blog,
•  Lori Lapin Jones, a Chapter 7 Panel Trustee and a New York Law Journal columnist, and
•  Peter J. Theobald of Klein Liebman & Gressen, a computer forensic expert specializing in computer forensic examinations.

 It looks to be an eye-opening discussion about uncovering hidden assets.

• Email This
• Print
• Comments (2)
• Trackbacks

The New York Times featured a front page story on how computers, blackberries, cell phones and other electronic devices are being used to discover adulterous relationships and hidden assets.

The Mississippi Family Law Blog points out these electronic devises all leave a  trail which may be discovered during the course of litigation.

Folks need to understand that if you use a computer or a phone, you are leaving an electronic trail which can easily be followed. Once divorce proceedings begin, the discovery process can allow your spouse to discover e-mails and inspect computer hard drives. Just because you hit the delete button does not mean the data is gone. Many times it is easily recoverable.

But, before resorting to self-help cyber-sleuthing, it is imperative that you consult with an attorney, to ensure that you do not violate federal criminal law.  Stephen Worrall on the Georgia Family Law Blog has written extensively on this subject.

While the electronic crumbs left on a computer may evidence attempts to secrete assets, the Asset Search Blog details how money laundering schemes and other attempts to hide assets have been frustrated.

In short, in most cases, through due diligence and sheer bull doggedness, hidden assets will be discovered.

• Email This
• Print
• Comments
• Trackbacks