Why Hiding Assets in Divorce Is not Worth the Risk

Everyone has their little secrets, and when you’re going through a divorce, you may find out all kinds of things about your spouse you never knew. Or perhaps the secrets one or both of you kept during your marriage are one of the reasons for the split.

However, you should not even contemplate carrying this duplicity into divorce proceedings. It’s tempting to hide assets that you think of as “yours”, such as bank accounts, property, or other items of value that could be tallied when determining division of assets, alimony, and child support, just for example.

However, if you’re found to have behaved in a dishonest manner, providing divorce lawyers and the court with fraudulent financial information, you could face serious repercussions as a result. Don’t think you won’t get found out, either. It’s the job of a diligent attorney to uncover every marital asset, whether you try to hide them or not, so you can bet your spouse’s lawyer will look.

Hiding assets in the hopes that the won’t be found simply isn’t worth the risk, and there are several good reasons why you shouldn’t attempt it.

Penalties
There are a number of potential penalties a judge may choose to impose if it is discovered that you’ve attempted to hide marital assets, deplete joint (or even personal) accounts, or deflate your income (to make it look like you earn less than you do). First and foremost, you may be required to repay any funds you have taken that your spouse was entitled to, and you could be slapped with sanctions, or monetary fines, on top.

As a further penalty, a judge could require that you hand over not only the equal share that would have gone to your spouse, but also any remaining share that would have been yours. Most family law judges will not take your intent to deceive the court lightly.

In cases where you fail to respond to legal discovery pertaining to hidden assets and you continue to hide them, you could face even more serious penalties, including being held in contempt of court. This could include fines or even jail time, as well as legal fees. You may also be required to pay a portion or all of your spouse’s legal fees associated with extended legal proceedings due to your deceit.

Divorce Modification
So, you managed to hide assets throughout the divorce proceedings and you thought you got away scot free. Then a mutual friend mentions your vacation home in Hawaii to your ex and suddenly you find yourself in legal hot water.

That’s right – in the state of Michigan, uncovering fraud after the fact could land you back in court and at the mercy of a judge predisposed to throw the book at you. This could end in a divorce modification that is far less favorable than the one you had, and worse than what would have happened had you been up front and honest to begin with.

The experienced lawyers at The Gucciardo Law Firm can help you to make wise decisions concerning your divorce proceedings. Call us today at (248) 723-5190 to schedule a consultation.