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What is "Secretion of Assets?"

"Secretion of assets" is just a legal term for hiding assets or property. "Assets" are defined legally as that which is of value and either tangible, like money and real estate, or intangible, e.g., good will or celebrity. 

Hiding Assets to Keep Them from Being Divided

Your attorney may have been discussing the possibility that your spouse is planning to hide assets so that he or she can keep them after the divorce rather than split their value between you in a divorce's marital property settlement. 

Secretion of assets is a very common phenomenon. Divorce judges have to deal with allegations of secretion of assets all the time, and they look upon secretion very unfavorably. Hiding assets from a marriage can take a variety of forms, such as: 

  • hiding the asset as a false debt
  • disguising an asset as an expense (say, in a business) 
  • giving the asset to a business partner or other trusted person to hold until the divorce is long past 

Dissipation of Assets

In other cases, "dissipation of assets" takes place; here, a spouse spends assets in order to prevent them from being shared. Secretly spending the asset (e.g., emptying a bank account or safe deposit box are examples) is dissipation. Destroying assets simply to keep them from the spouse has also been documented. Other dissipation examples are: 

  • deliberately reducing the value of an asset 
  • negligently allowing the reduction of the value of an asset 
  • allowing a real estate property to go into foreclosure 

Suspicion vs. Proof of Secretion/Dissipation

It is one thing to suspect that your spouse has plans to engage in secretion or dissipation of assets (or that he/she has already done so); it is another matter to prove it to a court. You may benefit from the services of a forensic accountant. 

(Source: Divorce dex) 

If you need further guidance regarding marital assets, contact us to schedule a private consultation with a divorce attorney.

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