How a Woman Moved $1.2m to Relatives to Hide Cash From Ex-Spouse

When it comes to money, it is very hard to make a case with just verbal claims. This is because "returning money to relatives or friends" is perhaps the most common ploy used by many people to divert cash from creditors or ex-spouses.

- Tan Ooi Boon

Some even go to the extent of drafting loan agreements as proof that there was such a debt that had to be paid.

But fake deals rarely withstand scrutiny because the parties cannot show the initial transfer and deposit of funds to the supposed borrowers. Similarly, when you owe money, there should be bank statements reflecting repayments as proof that the loan is genuine.

Here are three observations from the appeals court on how the finances of divorcing couples are examined.

HARD TO ERASE PAPER TRAIL

All assets acquired during a marriage are meant to be shared and the total amount can add up, especially in long unions.

In this case, the couple, who both held executive positions, had accumulated about $4 million worth of matrimonial assets that were liable for sharing.

When the case came up for hearing, the husband cried foul because more than $1.2 million that was kept in the wife's account went missing in 2018, not long after the couple contemplated getting divorced.

The wife produced "piecemeal" bank statements in 2019 to show that her relatives had deposited large sums into her account and that she was merely returning these in 2020 and 2021, after the break-up.

The court did not inquire about the reasons for the transfers but pointed out that the wife should have been more transparent in disclosing her full bank records to show the state of her accounts prior to these transactions.