If there are two universal truths that apply to any divorce proceeding, it’s that they are rarely ever easy, and that each spouse is legally obliged to open and honestly disclose all of their assets. Whether it’s out of spite or it’s to gain an unfair financial advantage over the other spouse, it’s not uncommon for people to consider withholding information on all of their assets. It’s important to note that doing so will have dire consequences, especially because the process of arriving at an equitable distribution of properties rests heavily on the truthfulness and full disclosure of the properties each spouse owns. 

Before we delve into the intricate details, we first need to understand the core governing principle that is equitable distribution.

Equitable Distribution

This refers to the legal theory that in order to make the distribution of assets as fair as possible, the courts need to account for extraneous factors that make the ownership of the property inherently unequal. An equitable distribution is a forward-looking process, such that it considers the financial position of each spouse after the divorce.

Why Would Anyone Want to Hide Assets?

The reason why there are people who opt to hide their assets from the court and their spouse is that if the asset isn’t listed as one of the properties to be distributed, the spouse that owns the property is likely to retain sole ownership of that property. Whether this is done out of spite or as a means to gain an unfair financial advantage, this is illegal because it deprives the other spouse from getting a truly equitable distribution. It’s also for this reason that many divorcees hire the services of groups that conduct foreign investigations with a global reach.

What Are the Legal Consequences of Hiding Assets?

There are two criminal liabilities that people who lie about their assets during a divorce. The primary thing to consider here is that during the process of assessing and enumerating properties, spouses are asked to divulge this information under oath. By withholding this information from the court and from their spouse, they are committing a crime. The following are the corresponding liabilities depending on the circumstances surrounding the assertion of falsehood.

False Testimony

A false testimony occurs when a witness lies under oath. If a spouse lies about the property they own, that spouse had just given a false testimony.

Perjury

When the falsehood is asserted in writing, the violation then becomes perjury. Both a false testimony and perjury carry heavy consequences, including jail time.

Even when hidden assets remain hidden during the divorce process, should these assets be discovered subsequently, the other spouse may not only sue the spouse that lied about the properties, they may also take action to acquire the property.

It’s important to place an emphasis on being forthright with our dealings, especially when they can have a lasting impact on the quality of life of another person. Deal in good faith and honesty, and always know your rights.