Hiding assets in divorce is illegal

Hiding assets in divorce is illegal

| Nov 23, 2020 | Divorce |

Perhaps you’ve been thinking about filing for divorce in a Kentucky court for quite some time. Maybe you’ve been married 15 or more years, have several children, or own a business, so you understand that taking the next step is going to spark a series of decisions, changes, and issues you and your ex must resolve in order to achieve a fair settlement.

It’s understandable that you’re concerned about marital assets, especially if you’re going to be the primary custodial parent once you finalize your divorce. If the relationship between you and your ex is contentious, you’re definitely not alone in your struggle. Are you worried that your spouse will try to hide assets in order to gain the upper hand in property division proceedings?

The judge won’t look favorably on someone who tries to hide assets

Parents want what is best for their children. When you divorce, this undoubtedly means that you and your former spouse must discuss numerous issues, including what you’ll do with your house, whether someone will be paying child support and how all marital property and debt will be divided. A judge can hold a spouse in contempt of court for trying to hide assets. The following list shows signs that you might have a hidden asset problem on your hands:

  • Your spouse overpaid on a recent tax return, meaning within the last five years.
  • You have discovered canceled checks for purchases your spouse never told you about.
  • Savings account withdrawals occurred without your knowledge.
  • Your spouse recently purchased real estate, and there is money missing from your savings account.
  • Your spouse overpaid on a jointly owned credit card account.
  • A scheduled bonus or incentive pay your spouse was expecting never arrived.

If your spouse was supposed to get a bonus, you might want to inquire about it. This is common way to hide assets in divorce. The person expecting the bonus asks his or her boss to delay payment until after he or she signs a divorce settlement. Any of the issues on this list are cause for concern if you’re preparing for property division proceedings and suspect your spouse of hiding assets.

Uncovering a hidden asset scheme

If you’ve thought about hiring a private investigator to help you reveal a hidden asset problem, know that many Kentucky spouses have done so in the past. It’s also helpful to discuss your case with an experienced financial analyst so that you clearly understand the state of your finances and will notice if something is not as it should be regarding a jointly owned account or other asset issue.

Many spouses who suspect their exes of hiding assets turn to family law attorneys for support because such an attorney knows what evidence to look for and how to bring such matters to the court’s attention.