During a couple's divorce, all aspects of their finances should be considered to ensure that their marital property can be divided fairly and equitably. When a spouse is a business owner, this process can become very complex. In some cases, a person may attempt to use a business to hide assets in hopes that they can keep money or property for themself and avoid dividing these assets with their spouse. When one spouse owns and operates a business, the other spouse can work with an attorney to identify any assets that have been concealed and ensure that all of their marital property is considered during the divorce process.
Methods of Hiding Assets Through a Business
A business owner may come up with a variety of ways to conceal money from their spouse as a way to gain a financial advantage during and after their divorce. These include:
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Nonexistent employees - If a business owner pays a salary to a person who does not exist, company records will show that these payments were made, but the amount may actually be transferred into a separate account and held by the business owner until after completing their divorce.