What Happens if My Husband Hides Assets During the Divorce?

If your husband hides assets during the divorce, it is considered a serious offense, and there are legal provisions in most jurisdictions to address this issue. The concealment of assets can affect the fairness of the property division and result in an unjust settlement. Here's what you need to know about the potential consequences and steps you can take if you suspect asset hiding during a divorce:

1. Legal Implications of Hiding Assets

• Fraudulent Behavior: Hiding assets in a divorce is a form of fraud, as it misrepresents the true value of the marital estate. This can lead to legal consequences, including penalties, contempt of court charges, or even criminal charges, depending on the severity of the concealment.
• Impact on Property Division: Most divorce laws require equitable or equal division of marital property. If assets are hidden, the court may issue an unfair property division that does not reflect the actual value of the marital estate, disadvantaging the spouse who is not concealing assets.
• Contempt of Court: If the court discovers that your husband has deliberately hidden assets, he could be held in contempt of court. This could result in fines or other penalties, and the court may order the assets to be disclosed and the hidden property to be divided.

2. How Hidden Assets are Discovered

To ensure a fair divorce settlement, it’s important to actively seek out and uncover hidden assets. Here are steps that can help you discover them:

• Full Financial Disclosure: Both spouses are typically required by law to fully disclose their assets and liabilities during a divorce. If your husband fails to disclose certain assets, he may be violating the law. You can request full financial disclosure through legal means, and the court may compel him to reveal hidden information.
• Forensic Accounting: Hiring a forensic accountant can be crucial in uncovering hidden assets. These professionals are trained to trace financial records and detect any discrepancies that might indicate asset concealment. They can examine bank accounts, tax returns, financial statements, and other records for inconsistencies.
• Investigate Suspicious Transactions: Look for signs of unusual financial activity, such as transfers of large sums of money, purchases, or changes in account ownership that might suggest asset hiding. If your husband has given gifts or loans to relatives or friends, this could be a way of transferring assets out of his name during the divorce.
• Check for Off-Shore Accounts: Hidden assets may be placed in offshore accounts or assets disguised under another person’s name. A forensic accountant or financial expert may assist in identifying and uncovering these types of assets.
• Court Discovery Process: During the divorce proceedings, you can request discovery, a legal process that compels your spouse to provide financial records, tax returns, property holdings, and other relevant documents. If your husband is hiding assets, this process can help force disclosure.

3. Consequences for Hiding Assets

• Revised Settlement: If your husband is caught hiding assets, the court may revise the divorce settlement. This could mean an increased share of the property for you, as the court will likely allocate more assets to ensure an equitable division.
• Awarding Legal Costs: The court may also order your husband to pay your legal fees if it finds that he intentionally concealed assets. This is to penalize fraudulent behavior and compensate for the costs you incurred in uncovering hidden assets.
• Contempt of Court: If a court determines that assets were intentionally hidden, it may hold your husband in contempt. This could result in serious legal consequences, including fines, sanctions, or even jail time, depending on the severity of the concealment.
• Punitive Damages: In some cases, the court may award punitive damages as a form of punishment for dishonest behavior. This can add an additional financial burden on your husband if he has been deceitful during the divorce process.

4. Legal Steps to Take

• Consult a Divorce Lawyer: If you suspect that your husband is hiding assets, it's essential to consult a lawyer experienced in divorce and asset division. They can guide you through the legal steps of uncovering hidden assets, including issuing subpoenas or requesting financial discovery.
• File a Motion for Disclosure: If your husband refuses to disclose certain assets, you can file a motion with the court asking it to compel full financial disclosure. If the court finds that he’s not being honest, it may impose sanctions.
• File a Motion for Sanctions: If you discover that assets have been hidden or if your husband intentionally provided false financial information, you can file a motion for sanctions, asking the court to penalize him for dishonest conduct.

5. Example

Let’s say your husband has a successful business, but you notice discrepancies in the financial documents he’s providing. You suspect that he has been hiding money in offshore accounts. You hire a forensic accountant, who uncovers a hidden bank account in a foreign country. Armed with this evidence, your lawyer can present it to the court, which may order the return of those funds, an adjustment in the property division, and may even penalize your husband for his dishonesty.

6. Conclusion

If your husband hides assets during a divorce, it can severely affect the fairness of the property division and the overall settlement. However, there are legal measures you can take to uncover hidden assets, including forensic accounting, discovery requests, and court motions. If your husband is found to have hidden assets, he may face penalties, revised settlements, and even legal sanctions. It’s crucial to have a skilled divorce lawyer on your side to ensure that all assets are properly disclosed and that you receive a fair share of the marital property.