Hidden Asset Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Hidden Asset, written in plain English, along with examples of how it is used.
What is Hidden Asset?
(n) Hidden Assets are the property held by a person which has not been recorded in the accounts of the person or legal entity with an intention or purpose to hide them from the authorities, creditors etc
History and Meaning of Hidden Asset
Hidden Assets are properties that are held by a person or a legal entity and have not been recorded in their accounts. The term "hidden" indicates that the assets are intentionally kept secret from authorities, creditors, or other parties. This practice is often done to avoid tax payments, conceal illegal activities, or protect assets from being seized by creditors.
Examples of Hidden Asset
- A businessman hides a significant amount of cash in a secret compartment in his home safe.
- A person under-declares his earnings on his tax returns to avoid paying the full amount of taxes owed.
- A company creates a fake company to funnel money and hide profits from their main business.
- A criminal transfers assets to family or friends to avoid seizure by law enforcement.
- An individual misrepresents the value of his assets during divorce proceedings to try to pay less to his ex-spouse as a settlement.
Legal Terms Similar to Hidden Asset
- Asset protection - strategies to safeguard assets from creditors, bankruptcy, or lawsuit judgments.
- Undisclosed assets - properties that are intentionally hidden or not mentioned in legal proceedings.
- Money laundering - the act of hiding the source or ownership of illegally obtained funds by making it appear as if it was obtained from a legitimate source.
- Tax evasion - the illegal practice of not paying the full amount of taxes owed.
- Fraud - the intentional deception or misrepresentation of facts made for the purpose of financial gain.