Spouses Who Hide Assets in Divorce
When you are in the process of divorcing your spouse, the temptation can be overwhelming to not be entirely truthful in disclosing all of your assets. You may feel that he or she does not deserve them or that you are more morally entitled to retain the entirety of a bank account or pension fund. Do not give into this temptation; the penalties for being found out far outweigh any possible chance you might succeed in your endeavor.
Is It Common?
One might wonder how many people actually go so far as to hide assets. The National Endowment for Financial Education (NEFE) found in a 2011 study that three in 10 Americans admit to some sort of untruthfulness with their partner about financial matters, whether it was outright lying or hiding, or simply softening the truth. More men than women historically hide assets, but of course, any spouse may be tempted, especially if they are the primary breadwinner.
The Consequences
If, despite the law, you decide to go ahead and conceal assets, the penalties can be very severe. In most states including Illinois, it can be a crime—most often perjury or fraud—or a civil penalty for contempt of court. If the hiding is egregious, it may be both. When you sign the financial affidavits that you have completed during discovery or testify in a deposition, for example, you are swearing that the information you are providing is true. If it is not, you are lying under oath, which is the definition of perjury. Illinois tends to take a stern approach to those who commit perjury in divorce proceedings, and it is a fairly common precedent for attorney’s fees and sanctions to be awarded in cases where it occurs.
Another possibility if you are caught hiding assets is for the court to hold that it is equitable for you to lose the entirety of that asset. Generally, if you and your spouse cannot agree on a property distribution, the court will distribute all marital assets equitably, although not necessarily in an equal manner. For example, if you are the breadwinner, your spouse may receive some of your assets because he or she lacks the capacity to make as much money as you do. If you hide assets, it can be imputed that you cannot agree on a distribution plan, so the court will step in. Both as a punitive measure, and to restore fairness to the settlement, you may lose that asset if the judge feels it is fair for you to do so.
Get an Attorney on Your Side
If you suspect your spouse of hiding assets, it may be more than you can handle alone. Contact an experienced Kane County property division attorney to get the help you need today. Call 630-232-9700 for an introductory consultation at our firm today.
Sources:
http://www.nefe.org/Press-Room/News/Admitting-to-Financial-Deceptions
http://www.forbes.com/sites/jefflanders/2012/11/14/what-are-the-consequences-of-hiding-assets-during-divorce/
