During a divorce, especially one that is contested, it’s not uncommon for an angry spouse to hide valuable assets in an effort to keep them from being divided during the divorce proceedings. Hiding assets is never a good idea – during the divorce process, both parties will be obligated to disclose their financial information. If you’re caught hiding assets, you may end up dealing with a more serious legal issue than what you originally bargained for. In this blog, our Denver divorce attorney shares how some spouses may hide their assets, how they’re uncovered, and the penalties for hiding assets.
HOW ARE ASSETS HIDDEN?
There are a number of reasons behind why a spouse would choose to hide his or her assets. Typically, these assets are either extremely high in value or are ones the spouse believe he or she is entitled to. Sometimes a spouse will underreport on income tax returns, file retirement accounts in a relative’s name, or disguise assets as a phony debt repayment to a friend. Regardless of how an individual chooses to hide assets, they were almost always uncovered during the discovery process.
WHAT IS THE DISCOVERY PROCESS?
During the discovery process, both parties in the divorce will be put under oath and be questioned on the details of their financial history. Bank statements, 401k plans, and property titles are all disclosed – should your spouse lie under oath, they can be charged with perjury.
WHAT ARE THE PENALTIES?
If your spouse is caught hiding assets during the divorce process, a judge can place monetary sanctions that he or she is required to pay monthly. In some cases, a judge can order the guilty spouse to give up the remaining assets to the other spouse to compensate for the assets that were hidden.
If you’re going through a divorce, you should not hesitate to hire a dedicated Denver divorce attorney from Karin Johnson Chatfield, LLC. We have the skill and insight to advocate on your behalf and protect your rights during a divorce. Call 720-386-5511 to schedule a free consultation.
