A survey conducted by the National Endowment for Financial Education found that approximately one third of U.S. couples with combined assets were dishonest about money. This includes lying about debt as well as money earned. The survey also found that 58% have hidden cash and 54% have hidden a minor purchase. Such deception can be harmful in a relationship. But it’s downright illegal during a divorce proceeding; doing so can be detrimental to your case.
When couples divorce, they must fully disclose all assets, income, expenses, and debt. Still some can’t resist the urge to bend the truth to keep a bigger piece of the pie, which may result in them hiding assets in divorce. They may hide or devalue property, underestimate income, overestimate expenses, or exaggerate debt. But there are no little white lies here. Signing a financial affidavit is swearing, under penalty of perjury, that everything stated is 100% accurate. This means admitting to having stock options – even if no one asked.
Anyone who’s seen a courtroom drama on TV knows that lying under oath and hiding assets in divorce is a big deal. The punishment may vary from state to state, or even from case to case. It could mean having to pay all of the ex’s attorney and legal fees. It could also mean jail time. It could mean that the whole of the hidden asset gets awarded to the ex, instead of splitting it down the middle. Such was the case for a woman who failed to mention she won $1.3 million in the California lottery 11 days before the divorce. Her quick lapse of memory lost her $650,000.
Understanding the penalty for hiding assets in divorce is crucial as you don’t want similar stories written about you. Put everything on the table and trust your divorce attorney to fight for your best interest the right way. By remaining honest and transparent throughout the divorce proceedings, you’re more likely to achieve the best possible outcome. If you do suspect that your spouse is hiding something, let your attorney know. Working together is your best strategy for obtaining and equitable divorce settlement agreement. Contact Jones Law Firm, PC, today for a consultation by calling (720) 606-4818. Once we work together, we can discuss all the details surrounding your divorce case and create the ideal plan to advocate for your rights.
