In finance, a hidden asset is an
asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...
that is not shown on a
balance sheet
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business ...
. An example of such an asset is the US$15 billion that
United Airlines
United Airlines, Inc. is a Major airlines of the United States, major airline in the United States headquartered in Chicago, Chicago, Illinois that operates an extensive domestic and international route network across the United States and six ...
'
frequent flyer
A frequent-flyer programme (FFP) is a loyalty program offered by an airline.
Many airlines have frequent-flyer programmes designed to encourage airline customers enrolled in the programme to accumulate points (also called miles, kilometres, ...
program,
MileagePlus
MileagePlus is the frequent-flyer program of United Airlines that offers rewards to passengers traveling on certain types of tickets. Following the 2010 merger agreement between United and Continental Airlines, United Mileage Plus was chosen to ...
, was estimated to be worth when it filed for
Chapter 11
Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, w ...
bankruptcy.
In
divorce
Divorce (also known as dissolution of marriage) is the process of terminating a marriage or marital union. Divorce usually entails the canceling or reorganising of the legal duties and responsibilities of marriage, thus dissolving the M ...
cases, a hidden asset is a property that is hidden by one spouse from the other and, as a result, is more difficult to discover during divorce proceedings.
References
Asset
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