During the asset division portion of divorce proceedings, some may try to hide their assets in an effort to save them from being divided. Regardless of your financial situation, it is always a bad idea to hide your assets – being caught can lead to a bigger legal burden than you bargained for. In this blog, our Morris County divorce attorney explains how assets are often hidden, how they’re uncovered, and the penalties for hiding assets.
How are assets hidden?
In most cases, the assets an ex-spouse hides are ones that extremely valuable or ones they firmly believe they’re entitled to. There are a number of ways in which someone may attempt to hide their assets. If a spouse, for example, has real estate property under his or her name, the title of the property can be transferred to a family member’s name as to keep it from being divided during the divorce. Other spouses may transfer large amounts of money into private savings accounts. Regardless of the method or strategy, it is very likely that hidden assets will be uncovered during the discovery process.
What is discovery?
During the divorce process, you and your spouse will be required to share financial information that outline any money spent, saved, or transferred. You will be obligated to disclose bank statements, retirement plans, and property titles. Both you and your spouse are placed under oath and asked to discuss the details regarding your assets and property. If either of you are caught lying during your deposition, you would be committing perjury, which is a punishable offense.
What are the penalties for hiding assets?
In the event that either party in the divorce is hiding assets, a judge can impose a number of penalties. A judge can either place monetary sanctions or order that the spouse guilty of hiding assets give up his or her remaining assets to compensate for what was hidden.
If you have reason to believe your spouse is hiding assets, you should not hesitate to put an aggressive legal professional by your side. At O’Sullivan Law Group, our Morris County divorce attorney has the skill and knowhow to successfully protect your rights and fight for what you’re entitled to. Call (973) 947-8699 to schedule a free consultation.