Is Your Spouse Committing Financial Fraud During Your Divorce?

 Posted on March 29, 2016 in Divorce

While uncommon, financial fraud does occur during divorce. In most cases, one spouse attempts to hide or misrepresent assets, and their actions, if successful, can lead to an unfair divorce settlement. How can you tell if your spouse is hiding money from you, or trying to scam you out of a fair settlement in some way? There are a few common red flags that can indicate your spouse is being shady with your finances, and a few places you can turn to for help. The first step is recognizing that the problem is occurring.

Warning Signs

If you and your spouse are about to divorce, or already in the midst of the divorce process, you may be dealing with some unresolved emotions. Anger, betrayal, frustration, and sadness are common. If your spouse was unfaithful or asked for a divorce out of the blue, your trust in them may be shaken. What else have they been keeping from you? Are they trying to skew your divorce settlement, or commit some other type of financial fraud? If you have a solid grasp on your family’s finances and do not notice anything out of the ordinary, it is unlikely any fraudulent activity is taking place. The more complicated your shared finances are, however, the more chances your spouse has to commit fraud against you. The more places you have assets stored, the easier it is for your spouse to be fraudulent. Divorce experts say to pay attention to these few key indicators:

• New behavior from your spouse, or sudden changes in behavior;
• New mail coming to your home, or mail being rerouted;
• Unwillingness to share financial details with you;
• Other deceptive behavior or lying;
• Unusual bank activity, money transfers, or multiple cash withdrawals;
• Giving money to friends or family without your knowledge or consent;
• Unusual computer habits, such as closing the screen as soon as you walk in the room; and
• Drug and alcohol addiction.

There are various methods of fraud your spouse may be using against you, but they most commonly involve misappropriation of assets. Your spouse may “forget” or fail to disclose savings accounts, safety deposit boxes, stock options, and other places where assets could easily be hidden. By not revealing these assets during your divorce, your settlement could end up being skewed. If you have reason to believe your spouse is attempting fraud against you, you need help immediately.

Seek the Help of a Financial Expert

A financial expert, such as a forensic accountant, can help you determine if fraud is occurring. A qualified financial professional can review your income statements, tax documents, credit card bills, business accounts, values of shared properties, and any other relevant areas to ensure no fraud is happening against you. The more places your assets are located, the further in-depth the accountant will have to dig. Having the help of a financial expert is especially beneficial for spouses who do not have an understanding of their shared finances.

You Can Prevent Financial Fraud

Divorce experts say that the best method to prevent financial fraud is awareness ahead of time. Married couples are encouraged to review their finances together. If assets go missing, or any red flags are noticed, discuss them immediately. If both spouses have an understanding of their finances - where their assets are stored, for example - the less likely it will be for fraud to occur.

A qualified divorce attorney can also help you deal with any potential fraud from your spouse. If you are a resident of Naperville or a surrounding area, the attorneys at Pesce Law Group, P.C., are here to help. Our skilled team has years of combined experience successfully handling a variety of divorce cases, and we will employ effective methods to make your divorce as smooth a process as possible. Call 630-352-2240 today to speak with a knowledgeable DuPage County divorce attorney to review your options.

Source:

http://www.huffingtonpost.com/divorce-magazine/financial-fraud-and-divor_b_8210922.html