Reasons Not to Hide Assets During a Divorce
Pitfalls of hiding assets before and during a divorce. Remember, attorneys and judges do this work every day and are trained to trace and find hidden assets.
Not disclosing all financial assets can result in severe punishmentsDivorce may signal the end of a romantic relationship for most couples, but as far as the law in Texas is concerned, it is the end of a financial partnership as well. As such, during a divorce full financial disclosure is not only expected but required by both spouses. According to Forbes, however, many spouses, especially in high asset divorce where opportunities for financial mischief are greater, try to better their financial position by attempting to hide assets. While hiding assets is not uncommon in divorce cases, the repercussions if such practices are exposed can be severe.
Finding cluesBecause of the financial complexity of high-asset divorces, hiding assets tends to be a bigger issue among these types of cases than others. According to Financial Advisor Magazine, if one of the spouses owns a business then there is even greater potential for assets being hidden or undervalued. One of the most common clues that assets are being concealed is for that business to suddenly be posting increased expenses at around the same time that a couple has chosen to divorce.
People who suspect their former spouse may be hiding assets should also check mortgage and loan applications, as these can reveal financial details about the former spouse that may not have otherwise come to light. Any suspicious behavior, such as passwords to online accounts changing or financial records suddenly "disappearing," should also raise alarm bells.
Legal HelpOf course, uncovering such financial deceit is complicated and anybody who believes assets are being hidden from them should contact a family law attorney right away. An experienced family law attorney can help clients with whatever financial concerns they may have during the divorce process, including what action to take if he or she is concerned about not receiving a fair deal from an ex-spouse.