Adapted from an original article by Amy Rose Dobson, The Washington Post, April 23, 2025
When couples separate, transparency becomes crucial—especially when it comes to finances. But as digital transactions have become more common, some spouses are getting increasingly creative at hiding money before or during divorce proceedings.
At Russell Alexander Collaborative Family Lawyers, we regularly help clients uncover hidden assets and track suspicious spending. And as this recent report from The Washington Post highlights, deceitful financial behaviour is sadly not uncommon. Here’s what to look out for.
1. Hiding in Plain Sight: “Legitimate” Spending with a Hidden Agenda
One popular tactic? Spending marital funds on reimbursable expenses—such as elective medical procedures, home services, or “payments” to friends or family that quietly circle back.
In the article, financial coach Christine Luken recounts a client who noticed unusual charges on joint accounts—including LASIK surgery, babysitting fees paid to a relative, and cleaning services run by a friend of her husband. The suspicion: her spouse planned to reimburse himself later using his health savings account (HSA)—after the divorce was finalized and the joint accounts dissolved.
2. The Slow Withdrawal Strategy
Family lawyer Emily Rubenstein recalls one spouse who withdrew small amounts weekly from an ATM over three years, disguising it as routine cash usage. The total? Over $100,000 in funds quietly siphoned from the marital estate.
These small, repeated withdrawals can be difficult to detect—but when reviewed with a financial expert or forensic accountant, they often point to deliberate planning.
3. Physical Hiding Spots: Safes and Storage Units
Some spouses literally stash assets. One woman discovered her husband was keeping large amounts of cash in a home safe—assuming she didn’t know the combination. She did, and she documented every deposit and withdrawal. When presented in court, this evidence helped her recover her rightful share and damaged her husband’s credibility in negotiations.
In another case, a spouse rented a friend’s storage unit to hide physical assets like a lawn mower and glass-blowing equipment. She took photos of everything and presented them when items mysteriously disappeared. Her vigilance paid off—the judge ordered the assets returned and properly valued.
4. Asset Devaluation: Lowballing What It’s Worth
Sometimes assets don’t disappear—they just magically become less valuable on paper.
In one example, a spouse claimed that his equipment and raw materials for a glass hobby were worth only a few thousand dollars. An appraiser pegged the value at over $45,000. He didn’t argue, suggesting the real value was likely even higher.
The same tactic can be used for intellectual property, under-the-table business income, or even cryptocurrency.
5. Debt Games and Credit Card Abuse
Spouses can also weaponize joint debt. One of Luken’s clients discovered that her partner racked up credit card charges related to an affair. Since the debt was in both names, he assumed she’d have to pay half.
But with proper documentation and legal strategy, she was able to successfully argue that the debt should be his responsibility alone.
Another common strategy: delaying payment of joint bills so one spouse bears the cost while the other maintains liquidity.
What You Can Do: Practical Tips for Ontario Separations
If you suspect financial dishonesty in your separation, here’s what we recommend:
- Monitor Joint Accounts: Flag suspicious or unusual activity (especially near separation dates).
- Photograph Physical Assets: If something goes missing, documentation is key.
- Hire a Financial Advisor or CBV: Many can spot patterns you may miss.
- Get Legal Advice Early: Especially before closing accounts or dividing property.
- Consider a Forensic Accountant: For complex cases involving business ownership or hidden income.
The Takeaway
Divorce is about more than legal status—it’s about financial security and fairness. Hidden assets can jeopardize your future, but with awareness, vigilance, and the right legal support, you can protect what’s rightfully yours.
