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Why Hiding Your Money in a Divorce and/or Child Support Court Case Won’t Work (and why people still try) By Braxton Mounteer

When those who will be ordered to divide assets with a spouse and/or pay child and/or spousal support (alimony) confront the matter, many try to lie about and to misrepresent their finances and their income in the hope they can avoid paying. Few involved in the support calculation effort–from the would-be support recipient to the court–believes one would tell the truth about his/her income, and this is doubly true for child support obligors who are self-employed. While it is tempting to lie about your income in the hope of receiving more than you should or paying less than you should, that’s wrong (and it most likely would not work anyway).

There are several ways one can try to hide and misrepresent income and assets during a divorce case.

  • hide physical cash in the proverbial mattress or mason jar buried in the backyard
  • hide it in a safe deposit box no one knows of but you
  • hide money in a trust account, in an account opened in the name(s) of your child(ren) or another person, in an offshore account
  • overpay taxes
  • defer salaries or commissions
  • fake debt

The deadbeat dad strategy works like this, you spend all your time working and thus generate income. However, you hate your former spouse and even though you don’t have the time with your kids that you would like you still want to provide for them. So, to avoid paying your former spouse anything, you hide your money in a trust or in an unknown bank account (or some other degree of hiding your cash like skimming or filtering) that they don’t know about. You filter your cash through several fronts (friends, family members, false debt, overpaying taxes) and after the lengthy process of laundering your money, you receive it.

 How do you enjoy the hard-earned cash that you have cleaned your name from? You don’t. You have wandered into the Walter White problem. You have money you can’t spend because that would unravel the lie. You will have to keep this lie going for 18 years, and then hope that your children forgive you in your golden years for the hardship that you put them through during their childhood (this depends on the level of poverty that you have claimed).

The housewife strategy works like this, you spend your time caring for the house and the children and generate no income. You get access to your spouse’s money either through an allowance or through direct access. You then skim off the top every time you pay a bill or get groceries or something similar. This is done through cashback or keeping the change if you are given physical cash. This adds up over time and must be started several years before your divorce. You store your nest eggs either in the form of valuables, or in physical cash. You could get a safety deposit box or a safe or hide the cash in the marital home (under floorboards, in a wall, under the mattress, or in a vase).

How do you enjoy this money? You don’t. These nest eggs are for emergencies or for your quick exit from the marriage. This strategy is entirely dependent on your former spouse not catching on that money is going missing. Hopefully they are asleep at the wheel regarding their finances and not a penny pincher. You then have to maintain the lie and not show that you have money to buy things that your former spouse has not gifted to you. How do you retrieve the money without your spouse getting suspicious? You can’t pawn your wedding ring or fill your house with luxury goods without them noticing (a distant relative can only die so many times before its suspicious).

While both strategies have their ups and downs, both involve underreporting your income and hiding it. You will get caught because you are trying to hoodwink someone who has intimate knowledge of your financial situation. You cannot hide your offshore bank account from your wife who you took to the Bahamas to open it. You can’t hide money or valuables from your husband without tearing the house down. You won’t be able to hide your income because you are trying to lie to people who have seen every trick in the book and then some. You are also required to produce documents, such as your bank account statements and lists of your property. Your spouse will keep you honest.

You are fighting an uphill battle to avoid your legal obligation. Most people do not make enough money to warrant these strategies and if you get caught, you can lose every penny you tried to hide and then some. You can try but you will most likely fail because you do not have the skill, time, money, or ability to maintain these deceptions. Do you really think you will reinvent the wheel?

Honestly, it is easier to just tell the truth because the court can just choose to not believe you. If the lie that you have told to the court has too many holes or just isn’t up to snuff, then you could just lose anyway. You care about your children, so do not give them a reason to hate you just because you want to spite your former spouse.

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