What Are Hidden Assets?
Going through a divorce can be a highly antagonistic affair, and oftentimes matters can be made worse when one spouse decides to hide their assets in an effort to protect them from being divided. Hiding assets, regardless of the circumstances of your divorce, is always a bad idea and, if caught, it can land you in more legal trouble than you bargained for. In this blog, our New York City divorce attorney explains how assets are hidden, how they are discovered, and potential penalties for spouses who conceal assets.
How are assets hidden?
Typically, assets that are concealed are ones that hold significant value, either financial or personal, or ones that a spouse feels entitled to keep. A common example of hiding assets is if one spouse has real estate under his or her name, they may try to transfer the title of the property under the name of another family member or friend during the divorce process. Almost all hidden assets are unearthed during the discovery process.
What is the discovery process?
During the discovery process, both parties of the divorce are required to bring forward any and all financial information that has been accumulated, both jointly and separately. Bank statements, 401ks, and property titles are all uncovered and closely looked out – these type of documents help settle issues regarding child support, alimony, and other divorce matters. During discovery, both spouses will likely undergo a deposition – you’ll be placed under oath and asked to provide a testimony explaining the details pertaining to your assets.
What are the penalties for hiding assets?
If your spouse is caught trying to conceal assets, a judge can impose monetary sanctions and penalties that your spouse is required to pay. There have been some instances where the court will penalize the guilty spouse and order him or her to give up whatever assets remain to the other spouse to make up for the ones that were hidden.
Filing for divorce? Call Brian D. Perskin & Associates P.C. today at (855) 965-1771 our fill out or brief online form to learn how we can help.