Which of the following is NOT a method spouses might use to hide assets in divorce?

Prepare for the Certified Divorce Financial Analyst (CDFA) Certification Exam with flashcards and multiple choice questions. Each question offers insights and explanations. Ensure success on your exam!

Creating a trust for the asset is not a typical method spouses might use to hide assets in a divorce. Trusts are legal arrangements that can serve various purposes, including asset protection and estate planning. While some individuals may use trusts inappropriately to shield assets from their spouses, the creation of a trust itself is a legitimate financial planning tool. It generally involves formal legal processes and is subject to specific tax and legal regulations.

In contrast, the other methods listed, such as denying the existence of an asset or falsely claiming it was lost or dissipated, are often associated with deceitful behaviors aimed at concealing assets from a spouse during divorce proceedings. Transferring assets to third parties can also be a strategy used to obscure ownership and limit visibility in asset disclosures during divorce negotiations. These methods are explicitly aimed at evading transparency and can lead to significant legal implications if discovered.

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