The process of separating financial resources and obligations is generally one of the biggest hurdles for spouses during divorce. Many people struggle to agree on what is fair and reasonable when addressing property division matters with their spouses.
Misconduct on the part of one spouse could make the situation even more complicated and volatile. Sometimes, people preparing for divorce try to manipulate the process by hiding assets and misrepresenting their finances in disclosure documents.
How can hidden assets alter the outcome of property division proceedings?
People can’t split what they don’t know about
The incentive for hiding property is to avoid sharing it with a spouse. Typically, couples have to divide or account for any property acquired during the marriage, as well as the income of both spouses throughout the marital relationship.
Hidden assets can alter the outcome of property division negotiations or litigation, as people cannot address assets that their spouses do not disclose as required by law. Those facing complex, high-asset divorces often scrutinize financial matters carefully.
If they discover signs of hidden property or intentionally undervalued assets, they can potentially present evidence about financial misconduct to the courts. Judges who are aware that one spouse intentionally lied about their assets may penalize them for that misconduct by allocating more property to the other spouse.
Understanding one’s marital estate and the value of different assets can help people push for fair divorce outcomes. Spouses impacted by attempts to hide assets may find the process of securing a reasonable property division decree more challenging than those who begin the process with honesty and transparency. Thankfully, seeking personalized legal support is always an option.