Contact Us
Subscribe to this list via RSS Blog posts tagged in hiding assets

Posted on in Divorce

hiding assets, Kane County family law attorneyDivorce is not only the end of a romantic relationship, but also that of a financial relationship. Courts use financial information from both spouses to make decisions about spousal maintenance, child support, property division, and more. Although everyone handles divorce differently, there are some mistakes that should be avoided at all costs.

Hiding assets or attempting to misrepresent your financial circumstances is one of these mistakes. Artificially deflating your income, failing to report a piece of real estate, transferring money between accounts, not reporting a source of income, or otherwise distorting your financial status can result in penalties, money sanctions, and a more problematic divorce. In order for a divorce to go as smoothly as possible and to avoid negative consequences, it is critical that both spouses are honest regarding their finances.

Hiding assets during a divorce may not be as obvious to spot as one may suspect. There are many tactics that spouses use to misrepresent their financial circumstances. A spouse who is attempting to fake their financial status may:

...

Posted on in Hidden Assets

hiding assets, St. Charles divorce lawyersDuring a divorce, it is a legal requirement that each spouse disclose information about his or her financial situation. This includes detailed information about property, income, expenses and debt. However, some people are dishonest in their financial reporting. Sometimes a spouse will attempt to hide assets from his or her partner, and this can happen for several reasons. Often, a spouse does this to avoid having to share those assets with the other party in the divorce. Other times, a spouse may not want to report all of his or her income so that he or she will have to pay less in spousal support (alimony) or child support. Hiding assets during a divorce is against the law and can result in serious penalties.

Some common ways that spouses hide assets include:

  • Hiding, or undervaluing marital property;
  • Overstating debts;
  • Underreporting income; and
  • Reporting higher than actual expenses.

According to the National Endowment for Financial Education, approximately a third of US adults who combined assets with a spouse admit to being deceptive about money. The penalties for doing so can be strict. For example, in one famous incident, a woman won $1.3 million in a lottery before filing for divorce. She did not report this income and attempted to hide it. When the judge preceding over the divorce case found out, he awarded the entire $1.3 million to the husband.

...

Recent Blog Posts

Categories

Archives

Contact Us

NOTE: Fields with a * indicate a required field.
*
*
*
*