Although strictly penalized hidden assets are frequent occurrences in divorce cases. Couples choose to give false information about their financial situation for different reasons. But what they retrieve in the end is a penalty for hiding assets in a divorce. So if you have any temptation to hide assets or suspect your partner doing any similar malicious actions, check out what may come next and get prepared properly.
| Penalty for Hiding Assets in Divorce | Description |
|---|---|
| 1. Legal Consequences | Hiding assets during divorce is a violation of the law and can result in legal penalties. This may include fines, sanctions, or even criminal charges depending on the severity of the concealment. |
| 2. Asset Forfeiture | If hidden assets are discovered, the court may order the forfeiture of those assets to the non-concealing party. This ensures a fair distribution of assets and discourages fraudulent behavior. |
| 3. Loss of Credibility | Concealing assets can damage your credibility and reputation in court. The judge may view your actions unfavorably, which can impact other aspects of the divorce settlement, such as child custody or spousal support determinations. |
| 4. Increased Legal Costs | Discovery processes aimed at uncovering hidden assets can be lengthy and costly. If you are found to have hidden assets, you may be responsible for covering the additional legal fees incurred by both parties to rectify the situation. |
| 5. Contempt of Court | Deliberately hiding assets can be considered contempt of court, as it undermines the judicial process and the principle of full disclosure. This can lead to further legal consequences, including fines or even imprisonment. |
| 6. Negative Impact on Settlement | Hiding assets can significantly impact the fairness and integrity of the divorce settlement. When discovered, hidden assets may be taken into account, potentially altering property division, spousal support, and child support arrangements. |
| 7. Damage to Future Relationships and Finances | Engaging in fraudulent behavior during divorce can have long-term consequences beyond legal penalties. It can damage relationships, including co-parenting dynamics, and negatively impact your financial stability and creditworthiness. |
Why Divorcees May Want to Hide Assets
If you are going through a fast and cheap online divorce in Washington state and are confident that hiding assets is definitely not about your case, review why people choose to keep their finances secret. Maybe you are skipping something important in your marriage termination case, too. Here are the most common reasons why couples have hidden assets in divorce:
Financial Greed
The top frequent and straightforward reason to hide assets in divorce is financial greed. A spouse may simply want to keep more assets to themselves to guarantee a better financial situation after the end of the marriage. Or they wish to deprive their soon-to-be-ex of their fair share just because they want to.
Revenge
One party may be angry with the other about the divorce itself or any related issues and decide to punish them by hiding the assets. In addition to unfair sharing, the suffering spouse will get a complicated divorce process. Although the revenging partner may feel satisfied at the beginning, the lost benefits due to their malicious actions will impact them, too.
Protecting Assets
Whether your divorce is regulated by equitable distribution or community property principle, you may believe your share will be not fair by your measures in the end or that your partner doesn’t deserve the share they may be entitled to. Then you may choose to protect your assets by hiding them. But remember that instead of financial security you may get a penalty for hiding assets in divorce.
Avoiding Obligations
A spouse may conceal their assets in an attempt to lower or avoid paying support payments. It may go about alimony or child support that the spouse is unwilling to cover so they choose to hide the real situation about their finances. But when the truth is uncovered such a person will definitely lose more than they attempted to hide and worsen their reputation significantly.
Financial Planning
The soon-to-be divorced may wish to hide assets for the means of future financial plans. The spouses may want to keep sole control over certain assets or businesses. These may guarantee their future financial security and economic stability. Plus, the authority over certain assets is guaranteed to be in the hands of one person unless the secret is revealed.
The reasons for hidden assets attempt may be different but the outcomes will be the same. One partner will hide the assets and everyone will suffer in the end. The divorce outcomes will be unfair, and when the malicious action is uncovered, the cheating partner will undergo strict penalties.
What are the Penalties for Hiding Assets in Divorce
If you consider the option of hiding finances in divorce or suspect your partner doing so, you should explore what will a judge do if you are caught hiding assets in a divorce. Then any of you may choose to act differently and be more open to cooperation.
Although the regulations on the issue are often state-specific, here is what may expect you in similar cases:
1. Financial Penalties
As soon as the attempt to hide the assets is revealed, the court will assign the appropriate penalty. The guilty partner may be ordered to pay the fine or the suffering spouse will get the additional share of assets to compensate for the harm, both financial and psychological.
2. Losing Credibility
The attempt of concealing the assets will harm your reputation significantly. You may lose credibility in your divorce case. This will have a negative effect on the regulations on child custody, alimony, property distribution, and so on. This will most probably be too high a price for losing benefits in your divorce case.
3. Assets Forfeiture
One of the worst scenarios of what happens if you hide money in a divorce for you is the court ruling to forfeit your assets. This means all the assets the spouse intended to hide will be assigned to the innocent partner. Plus, the cheating partner has no right to claim them in any form later.
4. Contempt of Court
Hiding assets in the divorce case is seen as a fraudulent action towards the court. The spouse who is proven to deliberately hide assets and break the law may be held in court contempt. This covers different kinds of fines, sanctions, and even imprisonment.
5. Legal Expenses
The spouse who decided to cheat on their soon-to-be ex by hiding assets may undergo extra legal expenses as a punishment. This means the fraudulent partner will cover divorce-related legal expenses and fees of their partner. Plus, they may be made to cover the bills for the services exploited to uncover the hidden assets.
In most cases, the penalties are not meant to be punishments. The measures are taken usually to give a lesson to any malicious intentions and encourage fair behavior between divorcees. But they are strict enough for everyone to remember that fair play is more beneficial than cheating in one’s favor.
Conclusion
Hiding assets is a highly unrecommended step in any divorce case. It can bring you to lose even more assets in the end. Plus, you may be made to pay extra to your spouse or to the state. No matter whether you intend to protect your business or punish your unfaithful partner, hiding assets will do nothing but bring you more harm.
In most cases, the best solution is openness and cooperation with your partner to achieve mutually beneficial outcomes. Plus, consultation with an experienced attorney will help you make sensible decisions only and lead you to success.
Also read: If Wife Filed for Divorce Can She Get Alimony: Types & Options
