Divorce can be stressful, with former partners struggling to figure out the clearest path forward. One of the biggest challenges of divorce is finances. The couple must divide their assets, deciding who gets what and determining how they will manage property, vehicles, and other items.
Spouses are legally required to disclose all their assets in a divorce; however, there are times when this does not happen. You might wonder: “What if my spouse is hiding assets in divorce?” Hiding assets in a divorce can lead to issues with property division, complicating the divorce process and causing considerable stress.
Why Would Spouses Hide Assets?
There are several reasons why a former spouse might hide assets in a divorce. They might not understand the value of their assets or misinterpret the value of their property. They might also hide assets due to vindictive behavior, which is too common in tense divorce proceedings. One spouse acting out of spite ultimately damages both parties involved in the divorce.
Spouses who hide assets tend to be the partner who managed the household finances or brought in the majority of income for the family. They could funnel money to separate accounts or falsify transactions to hide assets. If a former partner has a business account or regularly claims business expenses, consider that those could act as a vehicle for hiding assets.
What Are the Consequences of Hiding Assets in a Divorce?
Hiding assets in a divorce is a very serious concern. If someone lies under oath, they could face perjury and/or lost credibility before the judge. Some judges may likely take steps to punish the spouse who tries to hide assets by f awarding the undisclosed assets to the other spouse.
The concern about a spouse not disclosing all assets can significantly impact property division. If the parties involved have already reached a divorce settlement, the discovery of undisclosed assets may be cause to reopen the case and re-evaluate the settlement terms.
For example, a former spouse may be awarded a larger share of the marital property if there is evidence that they hid assets during the divorce process. Ultimately, this comes down to the discretion of the judge and the value of the hidden assets.
Remain Transparent During Divorce Proceedings
It is vitally important to maintain honesty during divorce proceedings. A person should speak to their lawyer if they believe assets are being hidden by their spouse.
Former partners at odds with one another have a legal responsibility to disclose all their financial assets and income during a divorce. This protects their future interests and ensures no repercussions after they reach a divorce settlement.
Work With an Experienced Divorce Lawyer To Protect Your Rights
While divorce is unfortunate, it is often the stark reality for many former partners. When both parties agree on everything, it can go relatively smoothly. However, it only takes one minor conflict or disagreement to sour. If you need assistance dissolving your marriage, our divorce attorneys can help. Our team can help you work through the finer points of separation and divorce—including marital agreements, spousal support, civil protection orders, and separation agreements.
Contact The Capital Family & Divorce Law Group to learn more about your legal rights today. Together, we can help you solve the difficult question, “What if my spouse is hiding assets in divorce?” and ensure you get the settlement you deserve.