Concealing assets from another spouse during a divorce is illegal and can potentially result in serious financial and legal consequences. A spouse who wishes to legally safeguard their assets during divorce proceedings, or suspects the other spouse of trying to hide their wealth from them, may want to consider speaking to an experienced lawyer to discuss their legal options. Learn about the consequences of hiding assets in a divorce, and find out how King Law Offices can assist individuals with their divorce-related legal issues. Speak with an experienced South Carolina family law attorney from our firm today by calling (888) 748-KING.
Why Do Spouses Conceal Assets in Divorce Proceedings?
According to the South Carolina Bar, South Carolina is one of many states that distributes property in a divorce per equitable division rules, meaning that a judge determines how to split a married couple’s assets in a fair and equitable manner; importantly, this does not necessarily mean they will opt for an equal split. Per §20-3-630, Title 20, Chapter 3 of the South Carolina Code of Laws, the court considers multiple factors when making this determination, including marital conduct, the length of the marriage, the parties’ ages, spousal income and earning potential, spousal health, the spouses’ assets prior to marriage, whether the spouses have children, support obligations from other marriages, educational needs, spousal debts, and the contribution of each spouse in acquiring, preserving, or decreasing or increasing the value of marital assets, among other considerations.
Concealing wealth is not a recommended approach. Some of the reasons why a spouse may choose to hide assets during divorce proceedings include the following:
- A spouse is trying to keep a greater proportion of the marital assets by excluding them from the asset division process.
- They are attempting to conceal their actual income to minimize or remove alimony obligations.
- A spouse wants to punish the other party due to their marital conduct.
Do You Have To Declare All Assets in a Divorce?
Each spouse must honestly disclose their assets in full during a divorce, and the spouses confirm they have provided information regarding their assets accurately when filing divorce papers. That said, a spouse may still decide to conceal their wealth during this process.
What Is the Penalty for Hiding Assets in a Divorce?
Any party attempting to subvert the process of dividing property between spouses by concealing assets could face criminal charges since this may constitute perjury, fraud, and contempt of court, as well as financial penalties, such as a fine and having to pay the other spouse’s court costs and attorney fees. On top of this, a spouse caught doing this is likely to lose credibility with the divorce court, meaning they could face less favorable terms when the court issues the divorce decree.
What To Do if Your Spouse Is Hiding Money in a Divorce
Uncovering a spouse’s concealed assets is necessary to ensure the other party obtains a fair share of the marital assets during divorce proceedings. If one spouse thinks the other might be hiding assets, they can consider the following options.
Understand the Couple’s Financial Situation
Gather relevant financial records, such as tax returns, bank statements, property documentation, and investment portfolios. The aim here is to acquire an understanding of the jointly and individually owned assets, enabling spouses to identify missing details and discrepancies.
Consider Hiring a Financial Professional
Think about hiring a financial investigator or forensic accountant. These professionals may be able to find hidden assets by tracing funds, identifying irregularities, and analyzing complex financial documents. With this information, spouses could acquire a detailed understanding of their marital estate’s true value.
Understand more about the legal and financial ramifications of hiding assets in a divorce, and gain the answers to your legal queries concerning divorce. Contact King Law Offices today to arrange a consultation with a seasoned South Carolina divorce attorney.
Utilize the Discovery Process
Discovery refers to the legal process of requesting depositions and financial documents and asking the opposing party for additional information. By thoroughly conducting this process, a spouse can compel the other party to disclose concealed assets.
Can You Hide Money When Going Through a Divorce?
Hiding money when experiencing a divorce is illegal and likely to result in financial and legal consequences. A spouse may try to hide the true value of their wealth by adopting the following tactics.
Storing Money Overseas or in Shell Companies
A common method of concealing assets in a divorce is setting up offshore accounts in jurisdictions known for banking secrecy and transferring assets or funds to these accounts. Another tactic is to establish shell companies and transfer the titles of property or money to these entities.
Underreporting Their Income
Some spouses may attempt to underreport their income by hiding cash, undervaluing assets when disclosing their finances, or inflating company expenses. They might do this to falsify their actual income to negotiate lower child support payments.
Transferring Wealth to Family or Friends
Another tactic is to transfer valuable items, businesses, or properties to family members or trusted friends prior to divorce proceedings to appear less wealthy than they actually are. After the conclusion of the divorce, the spouse then asks for these assets back.
Overpaying Debts
While it can be a prudent financial decision, some spouses may choose to pay off their debts, such as credit cards, mortgages, or loans in advance to lower their estate’s value. When doing this during an ongoing divorce, the actual aim might be to reduce the amount of assets to split between the other spouse.
Investing in Digital Currencies
Cryptocurrency investment entails converting funds to digital currencies, offering a degree of anonymity. Due to their decentralized nature, funds in these accounts can be challenging for legal authorities and spouses to trace.
Indications of a Spouse Hiding Assets
Many warning signs can indicate that a spouse might be attempting to hide their assets from the other party during a divorce. Some example indicators include having separate credit cards or investment or bank accounts that the other spouse is unaware of or a drastic change in the financial activities of a spouse, such as large cash withdrawals, unusual purchases, or expensive gifts. Other signs could include hiding financial records, not sharing financial information with the other spouse, or having a defensive or secretive demeanor when discussing financial topics.
Contact a South Carolina Family Law Attorney To Understand More
Divorce is an emotional, uncertain, and complex procedure, particularly when involving large assets, and one or both spouses may find it tempting to deliberately conceal finances or assets to stop the other party from obtaining these resources; however, if caught doing this, it can lead to legal and financial penalties as a court is likely to view this action as undermining the divorce process. Individuals who are thinking about ending their marriage or have started divorce proceedings may wish to reach out to a knowledgeable attorney to understand how to legally protect their wealth. To learn more about the consequences of hiding assets in a divorce and get help with your family law queries, call (888) 748-KING to discuss these concerns with a South Carolina divorce lawyer from King Law Offices.