Why Hide Assets?
Assets may be hidden for a number of reasons, filing for divorce or bankruptcy among them. But hidden assets can be found with a little knowledge, imagination, and persistence. Assets run the gamut from cash, mutual funds, stocks, bonds, and insurance to liquid assets converted to personal property like art, tools, boats, and other property.
How Are They Hidden?
Most of these assets are transferred to some third party or hidden behind a variety of false documents. Family members or friends may be knowing or unknowing beneficiaries of property or investments in their name to be converted to the original holder later. Or the asset holder can pay down credit cards and mortgages, open a custodial account in the name of a child, transfer cash to a trust, or repay false debts so the cash can be given back later.
Where Should You Search?
To begin the search for hidden assets, obtain as much information about the person who may be hiding them as possible, including:
- Full legal name, variations, nicknames, aliases.
- Current and past addresses.
- Names and addresses of family and close friends including social security numbers and birthdates.
First check for evidence of hidden assets using income tax returns which contain a wealth of information concerning not just wages and sources of income but taxable refunds, tax overpayments, fund distributions, and other information about how the owner’s taxes are being handled. One time to thank the government for being so bureaucratic.
Next undertake a search of any type of bank accounts or funds, cash flow procedures in a business, credit card receipts, credit reports, and, certainly, a public records check. Public records can reveal the existence of a quit claim deed showing property transfer. They can also show liens, judgments, licensing and other records. The DMV and other state offices can even reveal the existence of automobiles, boats, and businesses.
Of course, there are some low-tech ways to search for assets as well. Just because assets can be found from the types of records listed above doesn’t mean some assets can’t be found other ways that could prove to be easier on time and pocketbook:
- Use surveillance: This can provide an insight into a person’s lifestyle, indicating possible hidden cash reserves. It might even lead to personal property that was parked in an out of way place.
- Search the trash: As long as there is no local statue against it, someone’s trash can be considered public property. Bank statements and financial records might be found. A good argument for shredding personal documents.
- Interview anyone who could have pertinent information: business partners, litigation opponents, neighbors (former and current), or co-workers. This doesn’t mean skip family and friends…you probably already talked to them anyway, right?
- Search for overseas assets: There may be public records detailing property and accounts. Just be aware there is no comprehensive listing that can be easily searched.
Nothing seems to bring out the cunning in people like assets, large or small, that could go to someone else if discovered. There may some legitimate reasons for hiding assets but others are simply ways to take it with them.
* Image courtesy of FreeDigitalPhotos.net
