Consequences of Hiding Assets During a Divorce

Hidden assets are one of the most stressful situations you may encounter in a divorce. South Carolina is an equitable division state, but for assets to be divided fairly, they must all be disclosed. When one spouse takes steps to hide certain assets for their own benefit, they are essentially stealing from their ex.

Additionally, there are numerous consequences one may face if they attempt to hide assets during a divorce. Learn more about hidden assets, and if you fear that your spouse is trying to hide assets during your divorce, call Nowell Law Firm at 864-707-1785 now.

Hidden Assets Always Come to Light

People who try to hide assets often think they are far smarter than the judge in their case, their ex, and their ex’s legal team. However, everything leaves a paper trail—and if someone takes this risk, the odds of getting caught are incredibly high. People going through a divorce are on high alert for any wrongdoing, so they are sure to notice any change in behavior or spending. Once those suspicions are there, there are many tools they can use to uncover hidden assets.

Forensic accountants are one resource available to wronged spouses. They know how to uncover hidden paper trails for assets that have mysteriously gone missing.

And make no mistake of it—there’s always a paper trail. In today’s world, there is always a paper trail for assets of value. Even cryptocurrency and other digital assets can be tracked down and located.

Many people are also surprised to find out that those who hide assets are often turned in by those close to them. Friends, family members, and business associates often send anonymous tips to their spouse or attorney—even if they don’t care for the wronged spouse, they may not want any part of their friend’s illegal activity.

How the Division of Assets May Be Affected

The division of assets can be negatively impacted by hidden assets. If a spouse successfully hides assets, the division of assets is likely to be highly unbalanced in the wrongdoer’s favor. This is only short-term, though, as the hidden assets are likely to be uncovered at some point. When that happens, you can expect the wronged party to go right back to court.

If hidden assets are uncovered during the divorce process, the judge will not be happy with the spouse who attempted to mislead them. Should the division of assets ultimately be decided by the judge, they may take this into account.

The Legal Consequences of Hidden Assets

There are several legal consequences associated with hidden assets. The court may impose financial penalties or order sanctions against the individual in question. If the party went to great lengths to hide assets or hid a substantial amount, they may even face criminal charges for engaging in perjury by intentionally lying to the court.

Hiding assets can also affect the rest of an individual’s divorce case. It severely damages the judge’s faith in them and destroys their credibility. This can lead to them being on the losing end of future negotiations and court decisions.

Coparenting Issues and Broken Trust

Beyond the legal issues associated with hidden assets, hiding assets can leave a co-parenting relationship in tatters. For many couples, their relationship doesn’t end after divorce—it simply changes into a co-parenting one that can be amicable or adversarial. Attempting to hide assets is a good way to ensure that the scale tips toward adversarial. The wronged party may have little to no trust in their co-parent, which can poison the relationship for the entire time they share minor children.

Of course, this has negative effects on their shared children. Perhaps the co-parents would have been able to work together for their children’s best interests or be flexible in their co-parenting schedule, but the hidden assets forced the wronged party to do everything by the letter.

Looking for Help with Your Divorce? Contact Nowell Law Firm Now

If you are preparing for divorce, know that you don’t have to go through this alone. Let Nowell Law Firm support you as you move forward. Call us at 864-469-2481 or contact us online to set up a consultation now.