Divorce is a difficult time for almost every person going through it, and finances can complicate a divorce quickly. Depending on how the couple gets along and how amicable the divorce is, the process can be straightforward or challenging.
One of the most common mistakes people make when they are getting a divorce is hiding financial assets. The truth is that it is very difficult to hide assets from the other party if they seek representation and do the work to find out.
In simple terms, here’s what you should keep in mind:
Honesty is the best policy
You may have heard this saying before and it may sound corny, but it is nonetheless true, especially when it comes to matters related to divorce and the legal system.
If you are going through a divorce, disclose everything you have, including:
- Money in the bank
- Properties
- Investments
- Retirement accounts
- Collections
- Jewelry
- Art
In essence, you should disclose anything you own, whether you think it has value or not. Why? Because courts do not take kindly to deception, if you fail to disclose this important information, the court will likely believe that you were hiding it.
The reality is that most people know what they have if it is of any value, so that assumption is probably not too far off and it is likely fair to think that if you have property in another country and fail to disclose it, you probably had financial motivations to do so.
Trouble with the law
Hiding assets can get you in serious trouble with the law. Many people do not know this but if the court finds out, you could face fines and an unfavorable decision about the division of assets because you lied.
Remember that the court makes decisions based on the information the parties provide it with. This means that your credibility matters and you should think twice before hiding anything from the court.
Other unexpected problems
Many people are not aware of the serious consequences that can come with lying to the court. Courts of law expect citizens to present themselves as they are and to disclose information as candidly as possible.
- If you hide assets during your divorce and get caught, you might not only face court fines and penalties, but these lies can extend the legal proceedings and lead to additional legal costs.
- If you are the reason why your soon-to-be former spouse has to pay more legal fees, the court may order that you pay those legal fees.
- If the court discovers a hidden asset, that asset is probably up for distribution. While your attorney can explain in detail what assets are divided and what assets are not, if you hide an asset, it is probably because you are aware that it would be divided. Avoid those problems and disclose everything upfront.
- You might be shocked to hear that in extreme cases, individuals who hide assets can face criminal charges, especially if perjury or fraud are involved.
It is best to be as straightforward as possible at all times during the divorce. Be honest with the other party and their attorney (unless your attorney advises you otherwise, or you can let them speak for you instead) and never, ever lie to the court.
Disclose, disclose, disclose
If you are confused about the value of something and whether you should disclose it, ask your attorney. The answer is probably going to be yes but it is important that you tell your attorney everything. They can only help you to the extent that you allow them to, and for that, they need information.
Divorce is not just the end of a relationship. It is also the end of a legal partnership and the court takes honesty and integrity very seriously. Lying to the court about anything can make you look bad and impact you in other areas, too, so make sure that you are straightforward from the very beginning. By doing this, you will save yourself a lot of time and trouble.