Penalty For Hiding Assets In Divorce
One thing you never want to do is hide assets during a divorce process. A legal requirement for divorcing couples is disclosing each and every asset they have, including income, expenses, and debts, if applicable. People may hide assets during this process for a variety of reasons, with money being the main culprit. So, what are the penalties for hiding assets during a divorce?
What Happens If You Hide Assets In A Divorce?
There will be some serious consequences if you lie under oath. While penalties for hiding assets in a divorce will differ based on the state, you will still be in blatant contempt of court regardless of when the divorce is finalized.
If a judge finds out that one party is knowingly violating asset disclosure laws, the judge could make them pay for their ex-spouse’s attorney fees and/or fines. The judge could also dismiss all of the claims made by the lying party. Jail time could be given to someone hiding assets in a divorce for more serious cases.
The judge in the case could make said party pay additional penalties and provide your ex-spouse with a larger distribution in the divorce settlement instead of splitting it. Hiding or lying about assets will result in one party losing all credibility. The judge may believe you are lying about everything during the proceedings moving forward.
How To Uncover Assets
There are several things someone can do in an effort to uncover the truth about any assets their ex-spouse could be hiding. For example, a private investigator could be hired to follow the ex-spouse and monitor any suspicious behavior.
During the divorce case, the court will allow the divorcing spouses to seek out specified information during the discovery portion of the case. At this time, you will be able to subpoena various individuals to help you plead your case. You will be able to subpoena your ex-spouse’s employer to get income records or even bank statements.
In some cases, it may not be possible to uncover all the assets until the divorce is finalized. You may learn afterward that your ex-spouse did, in fact, make more money than was claimed during the discovery phase.
If this happens, you can still report this and get a fair settlement after the fact. You simply have to file a motion in court about the hidden assets and ask for the case to be reopened.
However, amending a divorce agreement is much simpler if you live in a community property state. This means that all assets earned while married are joint assets.
What Are The Penalties For Hiding Assets?
The penalty or penalties will ultimately depend on the specific circumstances. For example, if one spouse inadvertently concealed assets, the court may redistribute the assets evenly according to state law.
If one spouse did deliberately conceal assets, the court can penalize them. The court can award the other spouse more than it would have otherwise, as mentioned above.
Along with redistributing the assets in the non-concealing spouse’s favor, the court can go further in more serious cases. The court can hold them in contempt, which could result in potential fines or even jail time, depending on the state.
Source:
- What Are The Penalties For Hiding Assets In Divorce? Retrieved January 22, 2025. from https://blog.marble.co/divorce/hiding-assets-in-a-divorce/
Collaborative Divorce And Child Custody
Discussions about child custody issues are always difficult during a divorce. While there is no way to make them easy or comfortable, you can find ways to work together. The collaborative divorce process helps with tools and professionals to make child custody and other decisions a little more manageable. By working together as a team, you’re able to make the decisions that are best for the kids.
Collaborative divorce can make these challenging times more manageable. It requires you to work with your spouse at a time when you have decided you need to go your separate ways. When it comes to child custody, though, you want to do all you can to make the right parenting decisions. Collaborative divorce can help create pathways for you to cooperate. If you live in the Phoenix/Scottsdale area and want to learn more about collaborative divorce, contact Ogborne Law today.
