14 Ways For How To Hide Money Before A Divorce

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Divorce leads to a lot of difficult situations.

One of the most difficult parts of a divorce is how the family finances will be divided.

Because money is such an emotional part of our lives, some people want to hide money from their spouse before a divorce.

There can be many reasons for this, including thinking you won’t get a fair decision from the courts, knowing that your spouse isn’t great with money and might go on a spending spree, and more.

If divorce is potentially on the table, it may be wise to hide money before a divorce so you have cash to help you survive financially.

You can ensure your own financial security by hiding money before your divorce.

Here are some ways you can do this:

  • Divert new income
  • Take cash back on purchases
  • Underreport income
  • Overpay taxes
  • Purchase prepaid gift cards
  • Rent a safe deposit box
  • Purchase valuables
  • Exaggerate debts

In this article, you will learn about the many ways to hide money from your spouse when you’re heading toward divorce.

I’ll also look at the legalities surrounding this topic and discuss some tips for making sure you don’t get caught hiding assets in a divorce.

Read on to learn how spouses protect themselves by hiding money before divorce, successfully.

14 Ways For How To Hide Money Before A Divorce

#1. Divert New Income

how to hide money before a divorce

Let’s say you’re due for a raise at your job.

That’s great, right?

It is but the timing of that raise could mean you’ll be sharing it with your spouse.

If your raise goes into effect before the dissolution of your marriage, your spouse’s attorney will jump all over that extra income, making sure it’s added to the overall marital assets.

You have a couple of options for keeping that raise for only you.

One is to defer or delay the raise, if you can.

Speak to your employer about saving your raise until after the completion of the divorce proceedings.

Another option is to figure out the exact amount your paycheck will increase by and direct deposit all the money from your raise into a separate bank account.

As long as your spouse and your spouse’s attorney are not aware of your separate bank account, that will be your spending money to keep.

The problem though is this secret might be hard to keep, especially of the attorney is good and wants to see paystubs.

Your bet option is to work with your employer to delay the raise.

#2. Hide Money In Your Business

If you own your own business, you could try to hide some cash here.

Common ways include hiring fake employees or buying imaginary equipment and then funneling this money to your personal account.

But many divorce attorneys are aware of these tactics and will most likely find out about it.

#3. Take Cash Back On Purchases

This is one of the easiest ways to hide assets from a spouse.

When you go grocery shopping or stop to buy anything else where there’s an option for cash back, take full advantage of that.

Use your debit card to pay and take out $10-20 on top of each purchase.

It’s not enough that it’s noticeable and you can quickly put away some cash in a savings account or by stashing it somewhere.

The key here is making it a small amount.

If your groceries are usually $100 a week and suddenly weeks before you file for divorce they increase to $500 a week, this will raise a red flag.

But increasing to $120 on random weeks and it doesn’t look so bad.

With that said, what will an extra $60 do for you in the long run.

To make it worth your while you have to do small amounts for a years.

#4. Underreport Income

Marital property includes money in all bank accounts, other types of accounts, and other assets.

Your divorce settlement will include detailed instructions for how to separate property between you and your spouse.

The process for property division starts with an in-depth financial analysis of the marital assets.

Your income amount is determined by what you’ve reported on your tax returns.

If you underreport your income when doing your taxes, your spouse’s divorce attorney only knows about what was officially reported.

Keep in mind this is a risky way to hide assets because of its potential legal implications.

As a result it is not something that is recommend you do.

#5. Overpay Taxes

You can change your tax deductions through your employer at any time.

That means that instead of more money hitting your bank account every paycheck, more money is taken out and paid to the IRS in the form of taxes.

When you overpay your taxes, that money comes back to you at tax return time as a refund.

You’ll just need to be careful about the timing of your tax filing.

Make sure you file so your refund is issued after all divorce proceedings are complete.

#6. Overpay Your Credit Cards

pros and cons of credit cards

As with overpaying your taxes, you can also over pay your credit cards.

When you do this, you will have a negative balance on your card.

Most times if you stop using the card, the credit card company will send you a check for the balance.

But if you keep using the card, the extra money will cover your new spending.

To make this work, you have to keep paying more than you are charging so you have a balance that can be returned to you.

#7. Open A New Credit Card Account

Another option to consider it opening up a new credit card account before your marriage ends.

The trick here is to make sure it is a card that offer cash back as rewards.

Now shift all of your spending to this card to build up a cash back balance.

Pay the monthly bill as usual.

Then after the divorce ends, you can redeem the cash and have it transferred to your checking account.

If you don’t mention that it is a cash back credit card, you should be able to get away with this.

However, if the attorney for your spouse is good, they will see the cash back amount and want half.

#8. Purchase Prepaid Gift Cards

It’s easy for the opposing attorney to figure out what you’re doing if you’re transferring money out of a joint account to separate accounts.

It’s not so easy for them to figure out what you’ve purchased with money being spent from a joint account.

Purchase some prepaid gift cards that you can keep on hand for use in the future.

They’re not traceable and you can use them anywhere credit and debit cards are accepted.

#9. Hide Money Using Cryptocurrency

invest in cryptocurrency

A new way people try hiding money is using cryptocurrency.

Since most of these transactions cannot be traced, and if they are it is very difficult, it is a good option.

But any lawyer worth their money will either try to track this money down or somehow get a portion of it included in the divorce agreement.

#10. Put Money In A Child’s Name

Some people resort to opening an account in their child’s name at the bank.

These custodial accounts are the child’s but since they are a minor, they cannot act on the account.

They need an adult.

So you put your name on the account and deposit the money.

After the divorce, you take the money out of the account.

#11. Rent A Safe Deposit Box

You can rent a safe deposit box and store anything of value securely inside.

You can fill it with jewelry, collectibles, cash, art, and anything else small and valuable.

So if you have any collectibles that have meaning to you, you might want to consider storing them in a safe deposit box and then claim you lost the item.

Sometimes the best solution for keeping valuables separate is to put them somewhere the other spouse won’t ever know to look.

#12. Enlist The Help Of A Friend

Another option for hiding valuables from your spouse is to get a friend to help.

You need to make sure this is a close trusted friend.

Take any valuables you have and give it to them for safekeeping.

Once your divorce is finalized, you can take the items back.

#13. Purchase Valuables

The key to this one is you need to purchase valuables that won’t raise any red flags.

Some items are obviously valuable and highly marketable.

For instance, if suddenly you purchase an original piece of art painted by Vincent Van Gogh, red flags will go up all over the place.

You can buy antiques, rugs, discreet collectibles, and other items that aren’t as overtly high-value.

It’s in your best interest to purchase items that are more likely to fly under the radar in terms of their value.

#14. Exaggerate Debts

get out of debt

You’ll have to get a little sneaky with this one.

An example of how to exaggerate debts is to set up a loan of some sort with a family member or friend.

Keep track of every time you pay this person to establish a record for the court.

Make sure it’s been documented in your own name.

When your financial information is evaluated to determine the equitable distribution of assets and spousal support limits, it will be based on your income and debt amounts.

Exaggerating debt levels makes it appear to the court that you have more going out in payments than you truly do.

You’ll also get all of that money back from the person you’re making those payments to later.

Legal Ramifications

There are some things you should know before deciding to hide assets before or during a divorce.

It’s against the law to hide money and other assets from a spouse and their attorney during a divorce.

You shouldn’t even disclose this information to your own divorce lawyer.

What Happens If One Spouse Gets Caught Hiding Money?

At the least, the spouse who is caught hiding assets from the other spouse will be ordered to give half of the hidden assets to him or her.

However, many times the judge could require more than that.

A judge may decide that the spouse hiding assets should turn over all the hidden assets to the other spouse.

Family law courts don’t take kindly to one spouse hiding assets from another.

In some cases, you could be found in contempt of court.

That can result in fees rendered on the dishonest spouse or even jail time.

Final Thoughts

There are the best ways to hide money before a divorce.

While it might sound good on paper to hide money from your spouse, know that there are serious legal ramifications to doing so.

Because of this, you are better off just being honest and figuring out your financial situation after the divorce is final.

This probably isn’t what you want to hear, but it is better for all parties involved.

Plus it’s a lot less of a hassle to hide and lie than it is just dealing with reality.

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