Aside from the emotional challenges, there are many uncertainties surrounding a divorce. One of the most worrisome is how assets will be divided. Not knowing what your financial future holds can unintentionally bring out the worst in people and may even cause them to attempt to hide assets.
There are several reasons why divorcing spouses may try to keep certain assets hidden. Primarily, this behavior stems from trying to ensure that they will not lose particular assets that they don’t want to risk losing. Other times. they may inadvertently or deliberately be less forthcoming about their entire financial portfolio.
Although hiding assets during a divorce is not a criminal offense, there can be several serious legal consequences that can come along with doing so.
3 Legal Penalties of Hiding Assets During a Divorce
In Florida, equitable division of assets is the law in divorce cases, though that does not always equate to a 50/50 split. Hiding assets or not disclosing an accurate portrayal of each asset and its value during a divorce is a violation of the law’s requirement
If it is discovered that you or your spouse has not been honest about one’s assets, here are a few penalties that you may face.
#1: Potential Asset Reallocation
In the State of Florida, either spouse can provide evidence to the court supporting why they should receive additional assets. Depending on the ruling, or if additional assets are discovered, there is a greater potential for asset reallocation. This may mean that you could be rewarded with a larger amount of your marital assets as compensation.
If a spouse is hiding assets, they could be asked to cover the cost of your legal fees and even any associated costs, such as an accountant, if you hired one.
#2: Found in Contempt of Court
The spouse who is hiding assets during the divorce could be found in contempt of court, which is the act of intentionally obstructing or defying the court’s administration of justice and violating the law. The judge will determine whether they are in criminal or civil contempt depending on their actions and the court’s findings. However, a civil contempt of court judgment is more common but can still potentially result in fines or even jail time if the Court were to so decide.
#3: Incur Perjury Charges
Perjury is when you are found to have lied under oath, usually Court testimony. Therefore, if a spouse materially lies about the amount or nature of their assets, they could potentially face a criminal charge of perjury, which could subject them to criminal prosecution.
Protecting Your Assets During a Divorce
Though emotions may be heightened when you are going through a divorce, it is never a good idea to try to hide assets, as it can result in a variety of legal challenges. A good offensive approach is to keep a running record of all assets, liabilities, and money from the start of your marriage.
However, not many individuals go into a marriage imagining they will be dividing their assets in a divorce down the road. In most cases, it is best to hire an experienced Florida family law attorney who specializes in divorce who can help you through each step of the process.
