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The Consequences of Hiding Assets During a Divorce

The Consequences of Hiding Assets During a Divorce

According to recent studies, it is not too uncommon for marriage mates to fib about money related topics. Whether big or small. Maybe you made a small purchase that you hid from your partner or maybe you were not completely forthcoming with all the money that you received on your paycheck. Regardless of if this practice is harmful or not during a marriage, how about when a marriage ends?

First things first, lying about your assets during divorce proceedings is illegal.

Not surprisingly, though, this fact does not stop people from doing it. It is all too common, for women especially, to be what attorneys refer to as the “out-spouse”. This refers to the spouse that may not have handled the majority of the financial obligations in the marriage. Therefore, this spouse may not have full knowledge of all of the assets both partners have. Thus, making it easier for the partner with more financial knowledge to lie about assets.

Individuals commonly lie in various little ways such as, hiding, understating, or undervaluing marital property, reporting lower income, exaggerating debts, or reporting overstated expenses. Individuals who are hiding assets are looking to keep more money and property than they are entitled to and are in turn cheating the other party out of what they deserve. Morally despicable, also illegal.

So, what happens if a party lies? In each contested, and even some uncontested divorces, parties must sign a Financial Affidavit. This is a document in which you swear to disclose all assets, income and expenses and liabilities under penalty of perjury. Even if you are not specifically asked about a certain asset, under this oath you would be compelled to divulge the information regardless.

If your husband or wife is caught lying under oath, serious penalties can be enforced. A court may order the lying party to pay your attorney fees or in severe cases they may be subject to incarceration. It all depends on the judge and differs case by case. Either way, it will not prove in your favor if you are caught lying.

If you are suspicious that your spouse is hiding assets, contact Roland Investigations today. We perform financial investigations of all sorts and we will work hard in your behalf. Divorces can be messy and ugly. Let us take at least some of the stress off of your hands.

By Roland Investigations 12-20-2019