When one spouse tries to hide assets during divorce

Divorce often puts property and money on the line, so some people try to gain an unfair advantage. One way they do so is by hiding assets during the divorce process. This can lead to serious legal consequences and damage the outcome.

What hiding assets looks like

Hiding assets means one spouse tries to prevent certain property, money, or income from being a part of the divorce settlement. It can involve moving money to secret accounts, giving large “loans” to friends or relatives, or undervaluing investments and personal property. Some people might buy expensive items, such as artwork or collectibles, and claim they are worth less than they really are. Others may leave out income from bonuses, rental properties, or freelance work.

New York follows equitable distribution, which means the court divides property fairly but not always equally. To do this, both spouses must fully disclose all financial details, including income, debts, investments, and property. If one person hides assets, the court can’t divide things fairly, potentially leaving the other spouse with less than they deserve.

Consequences of hiding assets

If a spouse gets caught hiding assets, the court can take strong action. Judges may change the property settlement to favor the spouse who was honest. In some cases, the court might award the entire hidden asset to that spouse. Judges have also penalized dishonest spouses by ordering them to pay additional fines or financial penalties.

Lying about assets under oath is also a form of perjury, which is a felony. This tactic can hurt the dishonest spouse’s credibility and lead to further legal trouble. In addition, hiding assets usually makes the divorce process longer, more stressful, and more expensive.

Being truthful during a divorce protects a person’s future. Trying to hide assets may seem like a smart move in the moment, but it often causes more harm than good. When both spouses are open about what they own and owe, the process moves more smoothly.