Hiding Assets in Divorce: Risks & Penalties

If you’re considering hiding assets in a divorce, you should know a few things.

• First, it’s essential to understand that hiding assets are illegal. If caught doing it, you could encounter severe penalties, including jail time.
• Second, even if you can successfully hide assets from your spouse, the court may still find out about them and order you to divide them equally.

So, if you’re considering hiding assets in the divorce, think carefully before taking action. It may end up costing you more additional money in the long run.

In this post, we’ll look at what hiding assets in a divorce are, how it works, and what the consequences are.

 

How Are Assets Hidden?

There are some ways that people try to hide assets in a divorce. Some standard methods include:

Hiding Cash

This can be done by keeping money hidden in a safe place, such as a safety deposit box.

Transferring Assets

People may try to transfer ownership of assets, such as property or investments, to a friend or family member.

Under-Reporting Income

This involves reporting less income than what you earn. This can be done by using a personal rather than business account for payment or by not registering all sources of revenue.

Overstating Expenses-

Such expenses can be inflated by a business or personal costs, such as claiming a higher mortgage interest deduction than what you paid.

What Are the Consequences of Hiding Assets?

You could face severe consequences if caught hiding assets in a divorce. These may include:

Fines

You may be fined for hiding assets. The penalty amount will depend on the value of the hidden assets.

Jail Time

In some cases, you may be sentenced to jail for hiding assets. The amount of time you’ll serve will depend on the value of the assets hidden and the laws in your state.

Loss of Custody

If you have children, hiding assets could impact your custody arrangement. The court may view you as dishonest and not in the best interests of your children.

What Can You Do if You Suspect Your Spouse Is Hiding Assets?

You can do a few things if you doubt your spouse is hiding assets. These include:

Hiring a Lawyer

 A lawyer can help you investigate whether your spouse is hiding assets. They can also help you gather evidence to support your claim.

Hiring a Forensic Accountant

A forensic accountant can help you identify assets that may have been hidden. They can also help you value these assets.

Asking the Court for Financial Records

You can ask the court to order your spouse to provide financial records. This can help you identify any assets that may have been hidden.

What is Asset Search Cost?

The best practice for searching for an asset is a complete asset investigation. For this, you need a lawyer to do the asset search for you; the cost will depend on the lawyer’s fees.

You can try to search the assets yourself, but it won’t be easy to find everything without help, and you could miss something important.

Additionally, most people are unfamiliar with all the places to look for assets, so they may not know where to start. Hiring a lawyer to do an asset search is the best way to ensure all purchases are found, and nothing is missed.

Final Words

Hiding assets in divorce is illegal and can result in severe consequences, including jail time. If you doubt your spouse is hiding assets, you should hire a lawyer to help you investigate. An asset search will help you find any assets that may have been hidden.

If you are facing any issues related to divorce or asset division, it’s essential to seek legal advice. An attorney can help you understand your rights and options and guide you through the process.

For more information on divorce and asset division, please get in touch with us.