Divorce could bring out the worst in spouses, especially if significant wealth is on the line. A spouse can resort to financial fraud to tip the odds in their favor.
Fraudulent actions can take several forms, such as concealment of assets, manipulation of fiscal disclosures, inflation of debts, or underreporting of salaries or business values.
Thus, anyone already in the middle of a divorce must learn how to protect their finances, so they do not start their life empty-handed after the divorce.
Financial fraud is preventable
Common signs that a spouse is deceiving the other often include unexplained bank deposits or withdrawals, sudden asset transfers to families or friends, or excessive cash transactions that do not leave a paper trail.
To combat these red flags, anyone suspicious of their spouse must:
- Safeguard essential documents: Keep important files somewhere that no one else knows about. They must be intact as these can serve as proof to establish ownership and other vital information.
- Close joint accounts: If not possible, regularly monitor them with extra vigilance or open new individual accounts.
- Restrict unauthorized access: Place additional security blankets to bar dubious activities or irregularities.
High-asset divorces have complex circumstances that may require a forensic team. They can dig deeper and uncover discrepancies not easily perceived.
Financial fraud obstructs the case
New Jersey courts expect both parties to disclose all their assets and liabilities honestly. Unfortunately, not all spouses exercise transparency. Such misconduct interferes with a fair divorce settlement. It does not only tamper with the final divorce decree but also increases the time and money needed to negotiate the case.