Money issues are a common reason couples separate. Because of this, divorcing couples may try to hide assets. Sometimes, spouses keep financial secrets while they are still married and continue this deception when they get a divorce.
Hiding assets usually takes place when a couple has accumulated significant assets. However, this can be both unethical and illegal. If you are thinking about getting a divorce in Boston, click here to understand your options and get professional legal guidance. Keep reading to learn how to make sure you get a fair divorce settlement.
Reasons Spouses Hide Assets
Marital assets such as cash, rental property, bank and investment accounts, homes, life insurance policies, vehicles, jewelry, stock options, and art are divided fair and equitably in a Boston divorce. Keeping track of asset portfolio components can be complex, and you can easily forget what you have acquired during your marriage.
Sometimes, spouses may try to take advantage of the fact that their significant other does not know about a portfolio by concealing assets and income. This can happen because they are not willing to share the assets with their spouse.
Spouses use different techniques to conceal assets during divorce. For instance, a self-employed spouse may not tell their spouse about all of their income or delay a bonus from a client. A spouse may overpay their taxes and expect to get it back through a refund later. Some spouses intentionally under-report their income.
Moreover, some spouses hide huge amounts of cash or create fraudulent debts to lower their net worth. Others may buy items like jewelry or artwork and lowball their value to conceal their true net worth.
Finding Hidden Assets
If you are going through a divorce and your spouse is not turning over the required financial documents, take action right away. Your spouse’s refusal to share financial information may mean they are hiding assets and denying you a reasonable share of your marital assets. A skilled divorce attorney can help minimize the risk of your spouse hiding assets that you have a claim to. They will follow the assets by reviewing your spouse’s tax returns and bank statements to find clues that they are concealing certain assets.
Some people give false tax returns during a divorce to provide an inaccurate financial picture. A divorce attorney can request the IRS to give you a full tax transcript that includes any amended returns.
Major Consequences and Penalties of Hiding Assets
A spouse who tries to mislead can incur serious penalties for concealing assets in a Boston divorce. Once caught, the perpetrator may face financial penalties. Also, they can be forced to forfeit their share of a certain asset as restitution to their spouse.
If the wronged spouse is awarded alimony, a judge can increase the amount to cover the concealed assets. Sometimes, hiding assets can be considered a criminal offense.
Moreover, the previous spouse can be negatively impacted if their spouse successfully hides assets. For instance, if a spouse gets all the money in a bank account, the other spouse won’t recover it, which impacts child support, housing options, medical bills, education, and other future expenses.
If you discover that your ex hid assets after the divorce, your lawyer can help file a court motion to open your case again. The court may amend the divorce agreement to give you a fair share of the hidden assets. But you must be able to present strong evidence to the court to win your case. Additionally, you may need to file a civil action for financial damages against your ex. Your attorney can guide you through these processes.