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Can your spouse get in trouble for hiding assets?

On Behalf of | Apr 30, 2022 | Divorce

If financial agreements have convinced you to end your marriage, you certainly are not alone. In fact, according to Market Watch, roughly half of married couples argue about money matters, with some individuals even hiding wealth from their partners.

If your spouse continues to hide assets from you during your divorce, you may end up with far less than you deserve. Fortunately, the harsh consequences of hiding assets may discourage your soon-to-be ex-husband or -wife from trying to cheat you.

Loss of the hidden asset

Your spouse may hide assets to gain an unfair advantage over you during your divorce proceedings. Still, if the court uncovers your spouse’s scheme, a judge is likely to give the asset to you. This may cause your husband or wife to receive significantly less than he or she would by being honest.

Court sanctions

In California, parties to a divorce have a legal obligation to disclose assets to each other and to the court. If your husband or wife falsifies a disclosure form, a judge may consider him or her to be in contempt of court. This designation may force your spouse to pay a financial penalty or even spend some time in jail.

Criminal prosecution

If your husband or wife breaks any law when hiding assets, he or she could face criminal prosecution. That is, it is not uncommon for deceptive spouses to commit perjury, fraud or other potentially serious offenses.

Ultimately, because your attorney and the court are likely to be looking for hidden assets, your spouse would be wise to be forthcoming about everything the two of your own.