hidden asset
Hidden asset is an item of value that is not stated or is understated on the books of a business (such as a balance sheet). An individual person could also have hidden assets. Assets are often not disclosed for an improper purpose, such as avoiding taxation, concealing it from a bankruptcy trustee, hiding it from an ex-spouse in a divorce proceeding.
In bankruptcy proceedings, courts often require “fraudulent intent” to establish that an asset was hidden. All hidden assets are omitted assets. But, not all omitted assets are hidden assets, as an omission could be inadvertent and without a motive for concealment. Any omissions must be corrected. See: Stamat v. Neary, 635 F.3d 974 (2011)
[Last reviewed in April of 2026 by the Wex Definitions Team]
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