Concealed assets is an unfortunate reality that many individuals face during divorce proceedings and financial disputes. At Global Investigations, we’ve encountered numerous cases where people attempt to hide their wealth to avoid fair distribution or protect themselves from creditors. So, how do people hide assets? Below, we look at various methods, the legal implications of such actions, and how professional private investigators can help uncover hidden wealth.
Why Do People Hide Assets?
Breaking down the ‘how’ of hiding assets starts with the ‘why’. People can have different motivations for attempting to hide assets:
- Divorce proceedings – To reduce the amount of wealth subject to division
- Debt avoidance – To protect assets from creditors or seizure orders
- Tax evasion – To reduce tax liabilities
- Business disputes – To manipulate company valuations or avoid payouts to partners
NOTE: Hiding assets is illegal and can have severe consequences, including contempt of court charges and financial penalties.
What Are Common Ways People Hide Assets?
Undervaluing Assets
One of the simplest ways people try to hide assets is by undervaluing them. This could involve:
- Claiming that jewellery, artwork, or collectibles are worth less than their true value
- Understating the worth of a business or property
- Deliberately neglecting maintenance to reduce a property’s apparent value
Using Cash
Cash transactions are notoriously difficult to trace, making them a popular method for concealing wealth. Individuals might:
- Make large cash withdrawals over time
- Use cash for significant purchases
- Keep large amounts of physical cash in safe deposit boxes or at home
Gifting Assets
Transferring assets to family members or friends is a common tactic. This might involve:
- Gifting valuable items to children or siblings
- Transferring property ownership to relatives
- “Loaning” money to friends with the intention of reclaiming it later
However, courts can often see through these arrangements, especially if they occur close to the start of divorce proceedings.
Using Trusts
Trusts can be legitimate financial planning tools, but they’re also used to hide assets. Methods include:
- Creating irrevocable trusts to remove assets from personal ownership
- Establishing offshore trusts in jurisdictions with strict privacy laws
- Using discretionary trusts to obscure beneficial ownership
Using Offshore Accounts
Offshore banking remains a popular method for concealing wealth. Individuals might:
- Open bank accounts in countries with strong banking secrecy laws
- Establish shell companies to hold assets
- Invest in offshore real estate or businesses
Using Digital Assets
In the modern era, digital assets present new opportunities for hiding wealth:
- Cryptocurrencies can be challenging to trace and easy to transfer
- Online-only bank accounts may be overlooked in traditional investigations
- Digital marketplaces can be used to hold value in virtual items or currencies
What Are the Legal Consequences of Hiding Assets?
Attempting to hide assets during divorce proceedings or to avoid creditors is illegal and can have serious repercussions:
Contempt of Court
In divorce cases, parties are required to provide full and frank disclosure of their financial situation. Failing to do so can result in:
- Fines
- Legal costs
- Potential imprisonment for contempt of court
Financial Penalties
Courts may impose severe financial penalties on those found to be hiding assets:
- The concealed assets may be awarded entirely to the other party
- Additional punitive damages might be applied
- The court may order a less favourable overall financial settlement
Criminal Charges
In some cases, hiding assets can lead to criminal charges:
- Tax evasion can result in prosecution by HMRC
- Fraudulent transfer of assets may be considered a criminal offence
- Money laundering charges could apply in severe cases
How Can Hidden Assets Be Uncovered?
Private investigators specialise in asset tracing and can help you uncover assets through a variety of methods:
Forensic Accounting
A team of forensic accountants can:
- Analyse financial records to identify discrepancies
- Trace the flow of money through complex transactions
- Uncover attempts to manipulate business valuations
Digital Forensics
In today’s digital world, electronic evidence is crucial. Private investigators can:
- Recover deleted data from computers and mobile devices
- Analyse digital footprints to uncover hidden accounts or transactions
- Use advanced software to track cryptocurrency movements
Surveillance and Intelligence Gathering
Sometimes, traditional investigative techniques are necessary:
- Covert surveillance can reveal undisclosed lifestyle habits or assets
- Intelligence gathering from various sources can provide valuable leads
- Interviews with associates or employees may uncover hidden information
International Asset Tracing
For cases involving overseas tracing, private investigators:
- Leverage their global network of investigators and informants
- Ensure they’re well-versed in navigating international financial systems
- Employ sophisticated techniques to pierce through layers of offshore secrecy
What Legal Options Are Available to Uncover Hidden Assets?
In addition to private investigation, there are legal avenues to pursue:
- Non-Party Disclosure Orders – Courts can order third parties, such as banks or employers, to disclose relevant financial information.
- Freezing Orders – In cases where there’s a risk of assets being dissipated, a court may grant a freezing order to prevent their disposal.
- Search Orders – In extreme cases, the court may grant a search order allowing premises to be searched for evidence of hidden assets.
How Can You Protect Yourself from Asset Hiding?
If you suspect your spouse or a business partner is hiding assets, consider these steps:
- Document everything – Keep records of financial statements, tax returns, and any suspicious activity.
- Be vigilant – Watch for unusual financial behaviour or sudden changes in lifestyle.
- Seek professional help – Consult with a divorce solicitor and consider hiring a private investigator.
- Act quickly – The sooner you begin investigating, the better chance you have of uncovering hidden assets.
Bringing Assets to Light with Global Investigations
Hiding assets is a serious matter with significant legal and financial consequences.
At Global Investigations, we’re committed to uncovering the truth and ensuring fair outcomes in divorce proceedings and financial disputes. Our team of expert investigators and legal professionals work tirelessly to trace hidden assets and provide our clients with the evidence they need.
If you suspect someone is concealing assets or you need help with asset tracing, contact Global Investigations today.
Our services are confidential, professional, and tailored to your specific needs. Remember, attempting to hide assets yourself is illegal and can have severe repercussions. Always seek proper legal advice and professional investigative services to protect your interests within the bounds of the law.