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Signs of Financial Fraud During a Divorce

| Jul 9, 2020 | Firm News |

Some people will do anything to ruin their partner’s finances during a divorce. Here are some signs that should make you suspect financial fraud.

No Financial Discussions

Your partner won’t hold financial discussions with you if they want to hide money. The same is true of a partner who has already misused some of your marital funds. Maybe they have bought an expensive gift for a boyfriend or girlfriend, and they don’t want you to find out. You should especially be concerned if you used to have frank financial discussions with your partner.

Unfamiliar Mail

Many financial institutions are not entirely paperless. Banks or financial advisers still send paper documents to their clients. Thus, receipt of unfamiliar mail is another potential sign of financial fraud. You should be concerned if your partner starts to receive mail from strange businesses, and don’t read the mail in your presence.

Alternative Address

Due to the risk of paper documents, a careful partner who wants to hide information from you can use an alternative address. Their financial institutions and delivery companies will use the alternative address so that you don’t suspect any wrongdoing.

Unusual Banking Activities

Many people still handle their financial services through their banks. If you have been married for a long time, you probably have a good idea of their banking or financial habits. Maybe you used to know when your partner pays their employees, settles regular bills, or the accounts they use for regular expenses.

You should be suspicious if your partner suddenly changes their banking or money habits. Sudden withdrawals from a savings account, unplanned sale of shares, or sudden closure of accounts are some of the things to watch out for.

Sudden Loans and Gifts

Gifts or loans are classic ways to hide assets during a divorce. In this case, your partner gifts or loans their friends or relatives valuable assets or huge sums of money. Your partner then reclaims the gifts once you divide the remaining assets and finalize the divorce. Thus, you should be suspicious if your spouse suddenly becomes charitable or philanthropic.

Business Delays

Business owners can use their businesses to hide assets. Maybe your partner was about to sign some business contracts, but the contracts have now taken a backseat to other business services. Some people even delay their invoices. Such delays might mean your partner wants to delay the income until after the divorce.

Increased Expenses

An increase in expenses is also a classic way to hide assets during a divorce. Be suspicious if your home expenditures have suddenly increased, and your spouse handles the bills alone. Maybe you have a side business, and the expenses have suddenly soared. Such increases might mean your partner has siphoned funds and used the increased expenses to mask the theft.

Loan Applications

A divorce involves both asset and debt division. Your partner might decide to apply for loans, go on a rampage with their credit card, or default on loan payments. You might be on the hook for some of these loans during the divorce.

Intentional Property Destruction

Not everyone engaged in financial fraud want to still money from their partners. A vengeful partner can even decide to deny you some properties or reduce your divorce settlement even if they also lose in the process. Such a person can break things in the house, such as delicate jewelry or artwork.

Financial fraud can reduce your divorce settlement and ruin your credit rating. The law office of Travis Van Winkle LLC has the resources to prevent and mitigate the effects of such fraud. Talk to us as early in the divorce as possible so that we can help you safeguard your financial life.