Can you possibly hide your assets? Well, some would say that if you have the will to do it, then there are more ways to try. Anyone can make the case as to why one needs to hide their assets. One may have done it because a notorious “syndicate” in their area – hunting every wealthy person down. ..Or something like that.
While these antics may have been seen on films, for whatever reason you’re hiding your assets, it should not be done, primarily, to cheat or mislead other people. Some says that the reasons are purely personal. Whether you’re hiding assets from family – or even creditors, like Transworld System – hiding assets, oftentimes, invites suspicion of misdeeds or may very well generate penetrating interest as to why one’s actions needed to be cloaked in secrecy.
Why should you hide your assets?
Before knowing the ways on how to hide your assets, it is best you know the reasons that some people have decided to hide all their assets. For some, it may be about the ex-spouse suddenly appearing, after the divorce, to get his/her share of their assets; or maybe it was because too many assets were already handed over to people – who only want more and more money or power taken away from the other party.
These are some of the valid reasons that others will readily recommend, in the event of dividing assets with a vindictive party. However, if the assets that are being hidden were illegally acquired, you are in direct violation of the law, and you are only incriminating yourself further.
So, how can you hide your assets? The better way to phrase that question is: How can you PROTECT your assets? You can do this by uses of a Limited Liability Corporation (LLC) or an Irrevocable Trust, but these topics are beyond the scope of this article; google these terms or go to Nolo to get more information on these items.
Oftentimes, the need to hide assets is generated by marital discord. In a marriage, when one or both parties have a lot to lose, they take drastic measures to secure whatever it is they think they’ll lose in a separation. And while there are sound approaches to asset protection, we’re going to focus on the asset protection tactics you should avoid.
The followings are perfect examples of what NOT to do:
- Transferring your assets to your great friend – it is already known that both parties have their full control of over their belongings. One way many people try to hide assets is by transferring it their buddy’s account. After a divorce, the friend will just transfer funds back to your account. You are lucky if your friend will actually transfer everything back to you; however, this brand of cooperation is rare, and tends to lead to other problems, as well. For example, your friend could have an outstanding debt with Diversified Consulting (debt collectors), and may use your assets to pay them off!
- Transfer it to another account – this step (or tactic) is very common and has been utilized by many. All one need to do, is withdraw from their brokerage account or joint bank account. Then transfer it to another account. The effectiveness of it depends on whether it is done in a timely manner.
- Some people foolishly try to use their debit cards for cash withdrawals. What they’ll do is, withdraw money from the debit card. Take the money and purchase products from a store – and keep the receipts. Then, later on, they take the products back to the store for a refund. The misuse of funds, in this manner is NOT recommended.
- Internal Revenue Service overpaying tactic – With this tactic, many people believe that they are one-step closer to hiding their assets. Here, they’ll just continue overpay the Internal Revenue Service, and tie their money up there; and once the IRS ask about it, the person using this tactic would claim that they had forgotten how much the payment was suppose to be. The money would eventually be credited back to them, but throughout the whole process, the funds would (supposedly) be inaccessible to creditors. This would give a person some time to negotiate their debt payment (though channels, like Eos Customer Service Number), and then once their funds became accessible again, they would be relayed to the creditor. Again, this is a deplorable act, and should be avoided at all costs!
- Accumulate your commissions – this is another way many people try to save some of the assets they gained from hard-earned commissions. They even ask their employer to delay the time they receive their commissions. In the event that the employer asks why, the person will just tell him that the delay in payment is for tax purposes.
- Fake expenses to go – Here, the person tries to tell the spouse that their business was in the state of struggling and that all the money will be spent to support the business. Some even go as far as adding some people, as accomplices, to be included in a fake payroll.
- Invoice Clients not included – Delaying the invoicing of clients, is another way many people hide their assets – as they feel it is easier, involves asset accrual and is considered to be much easier to hide, than cash.
Again, fraudulent conveyance or hiding assets in a deceptive manner should be avoided at all costs! Do not resort to these antics, if you wish to carry out plans of protecting your assets. Speak to an asset protection expert to acquaint yourself with the more appropriate measures of guarding your assets.