Hidden assets, such as stocks, bonds, and bank accounts, are often created to provide financial security and can be difficult to discover. Old tax returns, financial statements, ATM activity, and credit reports can be used to locate and recover hidden assets, which may be important in divorce or business partnership dissolution.
Hidden assets are financial assets such as stocks, bonds, or bank accounts that are not properly disclosed in normal accounting situations. In general, assets are hidden as a means to provide the owner with some form of financial security that is not apparent to those who do have access to the owner’s other assets. One of the most common reasons for the creation of hidden assets is the attempt by one or both parties in a divorce action to funnel money and other resources into hidden accounts, effectively preventing those assets from being considered when the couple’s holdings are divided. in divorce settlement.
Discovering hidden assets can sometimes be very difficult. People with experience in following small but significant leads can often trace assets that have been secreted to offshore accounts or other locations. This can be especially important in situations where a marriage or some type of business partnership is dissolving, as both parties may have a claim on those assets.
There are several ways to locate and recover hidden assets. A basic approach is to look for clues found in old tax returns. If assets appear in the documentation, but appear to have vanished, it is highly likely that those assets have been funneled into some type of account that is not documented in current financial records. In the United States, it is possible to request copies of past tax returns, for a fee. Please note that it may take up to sixty days to receive copies, which may or may not be sufficient time to identify hidden assets and take steps to have them disclosed.
Another approach to finding hidden assets involves poring over old financial statements. By looking at the details included in a savings account statement, a credit card statement, or even statements detailing investment activity, it is possible to identify instances where transfers have been made that seem suspicious. By investigating the nature of those transfers, it is possible to determine if those assets appear elsewhere in the available financial records, or if the assets were transferred to a hidden account.
Special attention to documented ATM activity on checking account statements is another possible means of identifying hidden assets. If there is a sudden spike in activity, or activity that seems a little out of place, there is a chance that cash will be withdrawn and placed in a hidden account. In some cases, withdrawn funds may be used in part to secure someone’s services to help hide assets such as jewelry, artwork, or other investments.
A last resort that can be helpful in identifying hidden assets is a credit report. Entries on the report may indicate the existence of credit or other financial accounts that have not been disclosed to the spouse or business partner. Depending on the nature of these accounts, they may contain hidden assets that must be divided between both parties as part of the dissolution of marriage or business partnership.
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