Dividing property in divorce requires honesty from both spouses. Full financial disclosure is a legal obligation.
If one party tries to hide money, property, or other assets, the consequences can be serious. Here are some key factors to consider.
Hiding assets affects property division
Courts use equitable distribution to divide marital property fairly. This does not always mean a 50/50 split, but it must be just. If a spouse hides assets, the court cannot make a fair decision. Common tactics include transferring funds to friends, undervaluing items or creating fake debts.
If something appears off, such as unusually low income or missing account records, the court can investigate. Tax returns, loan applications and transaction histories are often compared to identify inconsistencies. A significant difference between reported income and lifestyle may also raise red flags. In some cases, the court may order a forensic accountant to review the financial data.
Once the hidden assets are found, the court can adjust the division of property to correct the imbalance.
How courts find hidden assets
Divorce has a discovery process, which includes document requests, depositions and subpoenas. If needed, accountants may be brought in to trace where the money has gone. Once hidden assets are discovered, the court can adjust the division of property to reflect the deception.
Trying to hide assets can lead to harsh penalties. The court may award a larger share of the marital property to the other spouse. In more serious cases, a person might face fines or be held in contempt of court. If hidden assets are discovered after a divorce is finalized, the court may reopen the case.
Hiding assets also damages credibility. This can affect not just property division, but also related issues like spousal support. Honesty in financial disclosure is not just expected in divorce; it is legally required. For more information, you should seek legal guidance.
