What Does It Mean to Hide Assets During a Divorce?

Divorce is an emotionally draining process, with many issues to settle before the court can issue a divorce decree. Property division is one matter that can cause conflict as each spouse must submit to the court a complete list of the assets they own. The list comprises marital and separate assets and helps determine how the court handles property division.

In amicable divorces, the involved parties could negotiate property division with legal guidance from experienced mediators and skilled family law attorneys in Metro Atlanta. In contested divorce cases, one party may attempt to conceal valuable assets from the other spouse to avoid having them split equitably. However, the legal consequences upon discovery can be dire.

What Are Some Common Methods of Hiding Assets in a Divorce?

Some approaches some spouses use to attempt to hide assets include:

  • Not mentioning or listing them
  • Claiming they lost or sold the assets a long time ago
  • Buying new possessions such as artwork or jewelry to sell them after the divorce
  • Paying off loans to family members or close friends
  • Concealing assets in bank accounts the other party knows nothing about

They may also gift the asset to a friend or family member with an agreement to get the item back after the divorce settlement. Sadly, hiding assets creates the wrong representation of the couple’s financial status, affecting the court’s decision about spousal and child support. If you have a reason to believe your spouse is hiding assets, consult divorce lawyers in Alpharetta for legal counsel.

How Can I Tell If My Spouse is Hiding Assets During Divorce?

If you fear that your spouse is hiding assets during divorce, there are steps you can take to confirm your suspicion. The burden of proof lies with you, and Alpharetta divorce lawyers recommend the following tips to help you find the evidence you need:

  • Gather all of your household information: Get everything organized to help you analyze the financial situation in-depth, especially if you’re not in control of paying the bills. Bank and credit card statements, records of investment accounts, retirement accounts, pay stubs, health savings statements, and tax return records are crucial.
  • Study your spouse’s spending habits and lifestyle: If your spouse suddenly starts making large purchases or has unexplained expenses, it could indicate an attempt at hiding assets.
  • Follow the money trail: Look for unusual financial activity, such as transfers to unknown accounts, overpayments to a credit card, large purchases not discussed in advance, or large cash withdrawals. As you monitor your spouse’s spending, you could discover concealed assets.
  • Check online activity: Your spouse’s online activity and profile could reveal hidden assets. Random internet history and online access to financial accounts can help you find the missing pieces.
  • Hire a forensic accountant: If all your efforts don’t yield results or confirm your findings, you can hire a forensic financial expert to investigate your spouse’s financial status. They may uncover financial discrepancies or trace funds to reveal any hidden assets.

What Are the Potential Legal Consequences of Hiding Assets During Divorce?

Hiding assets during divorce introduces complexities into an already challenging situation. It makes the process more time-consuming due to the investigations that must be undertaken when there is suspicion of hidden assets. Your spouse could be subjected to various legal consequences if found to conceal assets during divorce:

Contempt of Court

The court requires divorcing spouses to list everything they own during property division. Deliberately hiding assets is considered contempt of court, which is a grave offense. The court may impose sanctions and other penalties to hold the at-fault party accountable for their actions.

Depending on the case specifics, the judge may require the offending party to attend counseling sessions, serve a jail term, or complete community service. Contempt of court may also tarnish the party’s reputation in the legal and social framework.

Financial Penalties

Attempting to hide assets during divorce can lead to financial consequences. Alpharetta divorce lawyers explain that courts can impose fines on a spouse who engages in asset concealment. The amount of fines depends on the severity and extent of concealment and the value of the hidden assets. The financial penalties could be in addition to legal fees incurred by the other party.

Loss of Credibility

Hiding assets can lead to a loss of credibility, raising doubt about the offender’s integrity, honesty, and overall trustworthiness before the court. This can dramatically impact the court’s decision on various divorce issues, such as spousal support, child custody and support, and property division.

Criminal Charges

Depending on the severity of the concealment, the offender may face criminal charges, including fraud and perjury. The legal consequences are hefty and may include imprisonment and hefty fines. Criminal charges can have life-long consequences, including a permanent criminal record that may inhibit future employment opportunities.

Beyond the legal implications, hiding assets also creates emotional turmoil and can fuel hostility. If you discover your spouse has been untruthful about finances throughout the marriage, you might find it hard to trust them on other matters affecting the divorce. For example, it could affect the co-parenting arrangements once the divorce is final.

A Skilled Divorce Lawyer Providing Legal Counsel on the Impact of Hiding Assets During Divorce

Spouses going through a divorce may try to conceal properties to prevent them from being divided during property division. However, the action is unethical and can lead to significant legal consequences, including criminal charges. Courts take financial transparency seriously for equitable asset distribution.

Let your Alpharetta divorce lawyers know if you suspect your spouse is hiding assets. They can help you find the concealed assets and provide legal insights to protect your rights and future. The team at the Hecht Family Law can provide legal support and representation during the divorce process to ensure a favorable outcome. Call us at 470-291-5342 for a FREE case evaluation.