How Do Spouses Hide Assets During Divorce?
When two spouses decide to divorce, part of the process involves each spouse providing full financial disclosure to ensure a fair division of marital assets. Sadly, spouses are not always fair during the process and they do not always comply with requirements. They may try to hide marital assets to shield them from being given to their spouse and this can make the process much more difficult. Below, our family law attorney explains in greater detail.
The Importance of Full Financial Disclosure
The process of disclosing your assets and other financial details is done under oath, typically through an affidavit filed with the court. Due to this, if it is found that you intentionally hid property from the court, you could face charges of perjury. Providing full financial disclosure ensures that both spouses have a full understanding of all the assets and liabilities, such as debt, that were acquired during the marriage. This allows for an equitable distribution of marital property.
Without full transparency, either spouse may try to misrepresent important financial information or hide assets in order to deprive their spouse of their fair share of the marital estate. This can lead to an unfair settlement. When there is no financial transparency, it is difficult for the court to assess issues such as child support and alimony. Spouses must submit extensive documentation such as tax returns, bank statements, investment accounts, retirement accounts, and more to ensure full disclosure.
How Might Your Spouse Hide Assets in Divorce?
There are many ways a spouse may try to hide assets during divorce. These are as follows:
- Transfer property: Transferring marital property to a family member or friend is one of the most common ways spouses hide assets during divorce. For example, someone may gift expensive items to a friend or relative, or even create a fake transaction that appears to show that property was sold when the asset was never actually transferred to a buyer.
- Underreporting income: Spouses often use the strategy of underreporting income to hide their full income during a divorce. Someone may intentionally report less income than they actually earn. A spouse may also underreport the earnings of a business or they may fault disclose transactions that used cash instead of credit or debit.
- Create fraudulent debt: A spouse may create fraudulent debt by inflating existing debts, fabricating loans, or creating fake transactions. This makes it seem as though they have many financial liabilities so they can reduce the amount of income available for alimony or equitable property division.
Our Family Law Attorney Can Discover Hidden Assets
If you are going through a divorce, it is critical that you seek legal advice from a Lehighton family law attorney. At The Law Office of Kim M. Gillen, PC, our seasoned attorney can advise on how to find assets you believe your spouse may be hiding and negotiate a fair settlement so you obtain the best possible outcome. Call us now at 484-613-0011 or contact us online to request a consultation with our experienced attorney and to get the legal help you need.
Source:
legis.state.pa.us/WU01/LI/LI/CT/HTM/23/00.035..HTM
