Are There Penalties for Hiding Assets in Divorce? (2024)

FAQs

Are There Penalties for Hiding Assets in Divorce? ›

Although most of us don't have hundreds of millions of dollars to be hiding in the first place, attempts to hide money and assets from soon-to-be-exes aren't as rare as they should be in New Jersey divorce cases. To state it plainly: Concealing assets in a divorce is illegal. Penalties for doing so can be severe.

Contempt of Court: If a spouse is found to have hidden assets, they may be held in contempt of court. This can result in fines, sanctions, or even jail time. Perjury Charges: If a spouse lies under oath about the existence or value of assets during divorce proceedings, they can face perjury charges.

It requires the parties to maintain the status quo concerning the family finances and children during the entire pendency of the divorce. That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially.

Financial infidelity happens when you or your spouse intentionally lie about money. When you deliberately choose not to tell the truth about your spending habits (no matter how big or small), that is financial infidelity.

“Not telling [others] is a way of avoiding that they bring up the subject, [of avoiding their] questions and [reopening] the wound. The ideal would be to reach an agreement with the ex-partner in this regard to avoid misunderstandings and unnecessary conflicts,” Clapés says.

Identifying Assets via Public Records

Sources include: County Recorder (real estate records), Secretary of State (corporation and UCC filings), Business Licenses, Health Permits, CSLB Licenses, CDSS, BSIS, DMV, ABC, Courts.

What is a red flag that a spouse is hiding assets? ›

Secret credit cards, bank accounts, or investment accounts that the other spouse doesn't know about. Sudden changes in spending patterns or financial behavior, such as withdrawing large sums or making unusual purchases without explaining the reason.

In California, some penalties for hiding marital assets in a divorce, considered contempt of court, can include perjury charges and loss of the hidden marital asset. Hiding matrimonial assets is illegal under any circ*mstance.

Financial infidelity, while deeply damaging to the trust and foundation of a marriage, is not illegal in the criminal sense. However, it can lead to legal consequences in the context of divorce proceedings.

Finding secret bank accounts is possible, but it is not something that a divorce attorney will be able to do. You will need to enlist the help of a forensic accountant or a private investigator in order to find this information.

A prominent divorce attorney told me the #1 place where husbands hide money is in the drop ceiling! Other common spots include tool boxes, hunting duffle bags, in their desk at the office, gun safes, and tackle boxes.

Your attorney has several legal avenues available for uncovering the truth. These may include subpoenas for your ex's pay stubs, bank statements, credit card statements, or tax returns. Your attorney may also submit a request for sworn testimony from your ex about his or her financial assets.

What is financial infidelity, and is it a ground for divorce? Financial infidelity is a grounds for divorce in "at fault" states and also in a no-fault divorce. Financial infidelity in a marriage, which can complicate divorce proceedings, includes behaviors such as: Concealing debt from one's spouse.

Money is widely known as one of the leading causes of divorce in America. It's estimated that financial problems contribute to 20-40% of all divorces. That means that for every 10 marriages that end in divorce, four of them are because of money.

In community property states, all marital assets and debts are divided equally between the spouses. Nine states in the U.S. follow community property rules, including California. However, in some community property states, judges are allowed to divide assets unequally in a divorce if they find it fair to do so.