Marital assets are split fairly in Birmingham. Some people hide accounts, empty their combined bank accounts, or hide money and assets to protect assets or resent their spouse. Hidden assets have major legal and financial ramifications. If you are affected, it is suggested to get legal advice.
Before And After A Divorce, How Do Spouses Conceal Funds?
Both parties must disclose their assets, debts, and economic condition during divorce. Either party can try to hide assets from their partner and the court during this disclosure by lying about their debts or leaving out some sources of income. Your spouse may hide assets in other ways, such as:
- “Gifting” money or assets
- Falsifying bill statements
- Deferring bonuses or income
- Lying about expenses or assets
- Transferring money to accounts using your children’s SSN
- Buying unnecessary things
- Putting money in P.O. boxes
- Selling assets below market value
How to Find Spouse-Hidden Assets
If you suspect your spouse is hiding assets, gather evidence. Review tax returns, shared bank statements, pay stubs, etc. Financial documents can be reviewed:
- Schedule A is important because it has detailed deductions that can help you figure out how much real estate and stuff they own.
- Schedule B explains foreign accounts and trusts, Schedule C outlines company losses and profits, and Schedule E details supplemental income and losses.
- Loan applications often include account details and pay stubs,
- Discovering concealed assets or recent “gifts” to others can be facilitated by cash flow information and account tracing.
Your attorney can use discovery to find financial information and assets, so tell them you fear your husband has or will hide assets. Your attorney can gather information during discovery:
- The document demands—asking for tax returns, credit applications, etc.
- Requesting a written interrogatory—either party responding to inquiries in writing—
- Demanding access to property (safe deposit boxes, collections, etc.) to inspect it
- Under oath, the opposite party must appear before a court judge and address questions honestly.
- As divorce lawyers often use forensic accountants to find hidden assets, hiring one may be wise. Your attorney can verify a financial disclosure and find concealed assets using the financial records presented.
The Penalty for Divorce Asset Hiding?
Perjury makes hiding assets from a spouse criminal, as many clients question. You sign your financial disclosure and swear to the truth if you testify or submit an application in writing for admission. Perjury—lying on oath—is punishable by jail time and heavy fines.
Perjury prosecutions for hiding assets are unusual. However, the following repercussions are possible:
- You must pay the other party’s legal fees and hidden asset investigation costs.
- Breaching their trust may cause your attorney to leave.
- You risk losing court/judge trust.
- You may lose the concealed asset or its worth.
