During a divorce, issues related to the division of marital property can often be some of the most important concerns to address. All of the money and property owned by a couple must be divided in a manner that is fair to both parties. However, there are some situations where the ability to divide assets equitably may be difficult due to actions taken by one spouse. To avoid dividing certain assets, spouses may sometimes attempt to hide money or property. This can be a significant concern in cases where a couple owns a family business that is primarily managed by one spouse. To ensure that marital property can be divided fairly, it is important to be aware of the methods that could be used to hide marital assets through a business.
Ways Business Owners May Conceal Money or Property
Issues related to a family business can complicate the property division process. In many cases, a spouse who is a business owner will want to make sure they will be able to continue owning the business after the couple's marriage is dissolved. This will require them to buy out the other spouse's share of the business, which is usually done by distributing other marital assets of an equivalent value to their spouse. However, the business owner may attempt to improperly benefit themselves and retain a larger portion of marital assets by taking actions such as:
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Devaluing the business - The business owner may misreport the value of business assets during the discovery phase of the divorce. They may falsely state that certain business assets have depreciated in value, or they may use other methods to attempt to demonstrate that the total value of the business is lower than its actual value. They may do so in an attempt to minimize the amount that will be required to buy out the other spouse's share of the business;
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