Divorce is a stressful and expensive process. Dividing your life into two pieces can be a painful experience, and many people have things they don’t want to lose. Sometimes, couples can be civil about those items, and division can easily occur. Other times, one spouse may try to hide or not disclose some of those items or assets to avoid having to surrender them to the other person or liquidate them to split the profits. The best way to avoid a messy situation is to speak with an experienced Los Angeles divorce lawyer. At Milton Family Law Group, we are a woman-owned firm, and our first priority is securing a positive outcome for you while not over-extending your budget.
Consequences of Hiding Assets During Divorce
If it becomes known that a party of the divorce has attempted to conceal assets during a divorce, they may be charged with contempt of court. According to the California Family Code, hiding assets can be seen as a breach of fiduciary duty. If the person is discovered, it may result in an award to the other spouse of 50% of the asset or 50% of the value. This will be determined based on the highest value at the time of the attempt to conceal. This includes the date of sale, date of transition, or date of ruling.
In some instances, this may also be seen as perjury or contempt of court for the party withholding. The divorce process undergoes the stage of discovery, in which both parties are required to disclose any relevant information. Willful withholding of information is akin to lying by omission. The California Penal Code states that perjury may be a felony charge resulting in up to four years in prison.
In addition to consequences that come directly from the court or divorce outcomes, the person may be fired by their attorney. Many times, prenuptial agreements will become void if assets are hidden, and the person may be held responsible for any fees incurred to discover the assets. The person may also become responsible for all lawyer and court fees.
Protecting Yourself From Hidden Assets
One of the primary ways you can protect yourself if you think your spouse may attempt to hide assets is to be familiar with your financial situation prior to the divorce. If you are the party that initiated the divorce, take time to gather the information ahead of time and make sure you have an idea of:
- Household income
- Household bills
- Property
- Mortgages
- Loans
The more you are aware of going into the divorce, the easier you will be able to determine if something your spouse is doing or saying doesn’t sound right. Working with a divorce attorney with Martin Family Law Group can make this process easier. We can work with you to determine what information is needed and help you compare what you have to what is expected or even what is found on social media. We know what asset hiding can look like and may be able to help you identify discrepancies reported by your spouse and provide the best outcome possible.