What Happens When a Spouse Hides Assets?

Divorce is difficult for everybody, and the financial aspects of divorce can be especially difficult to contend with. In the course of divorce, many people discover that their spouses are hiding money and other assets in the hope that they will not be used as part of any divorce proceedings.

Read on to learn more about what happens when one spouse hides money from another spouse.

People Hide Assets for Many Reasons

For many reasons, people may choose to hide assets from their respective spouses, especially in the middle of divorce proceedings. One common reason to hide assets is in the hopes that the judge will not require the higher-earning spouse to pay his or her ex-spouse more in spousal support or child support. Some people hide assets in the hopes that they will be the ones granted support.

The Evidence Is in the Documents

One of the first things you need to know is how to find evidence of finances going missing. The documents you need to look for include pay stubs, W-2s, 1099s, and tax returns. Proof of compensation is proof of income, whereas bank statements could make it easy to hide this money that comes in. Lawyers know how to look for the missing money based on the documents you have legal access to.

People Hide Assets in Different Ways

One way in which people hide assets from each other is via transferring property from one person to another. For example, your spouse might transfer real estate from himself to a child. A spouse who owns a lot of valuable collectibles can give them to a friend for safekeeping and pretend as if they never existed. You are tasked with the responsibility of finding proof that something illegal happens.

Another way people hide assets involves hiding income. Somebody who is self-employed may be able to report he or she brings in less income than they actually do. In some cases, an individual may ask for lower paychecks during the period of time in which he or she expects the judge to look.

Yet another way to hide assets involves the act of overstating one's debts. If your spouse reports that he or she has more debts than actually exist, the income appears much smaller.

Penalties Exist for Hiding Assets

A spouse who hides assets from another will face penalties in court. In many of these cases, the penalties are monetary. In some cases, the judge could even order that your ex-spouse has to cover your legal fees, including the fees you pay your attorney. Additionally, one individual may be awarded all the assets that the spouse hid.

Additionally, individuals who sign affidavits that claim their income is one number in spite of reality may also discover they have committed perjury. The documents you sign for the court are must be honest and accurate to the best of your knowledge. As a penalty, the judge could dismiss your ex-spouse's claims against you.

Attorneys Know How to Find Evidence

One of the first things you should do when you consider divorce is to hire an attorney. A family law attorney provides you with the information you need to pursue a family law case. Attorneys also understand how to find the evidence you need to bring your documents to the court.

The Law Offices of Jamie L. Hazlett & Associates offers legal services for families, including those going through divorce. If you believe your spouse may be hiding money in the midst of a divorce, you may have legal options. Call us today to discuss your case, including the intricate financial details.