Legal Definitions - hidden asset

Definition: A hidden asset is something valuable that a business has, but it is not listed or is listed as being worth less than it really is on the company's financial records. This is often done for bad reasons, like trying to avoid paying taxes or keeping it hidden from someone who is trying to collect money from the business.

• A business owner might have a valuable piece of artwork that they keep in their office, but they don't list it on the company's balance sheet because they don't want to pay taxes on it.
• A company might have a lot of cash that they keep in a secret bank account, but they don't list it on their financial records because they don't want someone who is trying to collect money from them to find out about it.

These examples show how a hidden asset can be something physical, like a piece of artwork, or something like cash that is kept in a secret place. In both cases, the business is not being honest about what they have, and they are doing it for bad reasons.