New Jersey law requires full disclosure of all marital assets during a divorce. This ensures a fair division of property. However, some spouses may try to hide assets to reduce the size of the marital estate, leading to an unfair settlement.
Both parties must be transparent about their financial situation. If you’re considering divorce, make sure you inventory all assets you and your spouse own. This will help protect your financial future.
How do spouses hide assets?
Spouses may use several methods to conceal marital assets. Here are some common tactics:
- Simply claiming an asset does not exist
- Transferring money or property to friends or family members
- Alleging that an asset was lost or stolen
- Making up debts to offset valuable assets
Understanding these tactics can help you identify any hidden assets. Being aware of these methods is the first step in protecting your interests.
Potential consequences for concealing assets
In New Jersey, spouses who hide marital property during a divorce can face several consequences:
- Legal penalties: Concealment of marital assets is a serious offense. If the court catches a spouse hiding property, it may impose legal penalties.
- Unfavorable judgments: If a court discovers hidden assets, it may give the other spouse a more substantial portion of the marital estate.
- Perjury charges: When a spouse signs a financial affidavit or provides testimony under oath, they are legally obligated to be truthful. Perjury is a criminal offense.
- Loss of credibility: A spouse who is caught hiding assets may lose standing in the eyes of the court, which can also affect custody and alimony decisions.
- Legal fees: Courts may order the spouse who hid assets to pay the other party’s legal fees, especially if significant resources were spent uncovering them.
Not disclosing assets can lead to severe consequences and undermine the integrity of the divorce proceedings. It is generally in the best interest of both parties to be transparent and honest about their financial situations.
Seek help to protect your financial future
Skilled divorce attorneys are well-versed in uncovering hidden assets. They often work with forensic accountants to trace financial trails. Here are some of the places they look:
- Reviewing tax returns: Identifying discrepancies or undeclared income
- Examining bank statements: Looking for unusual withdrawals or transfers
- Investigating business records: Checking for unreported business assets
- Searching for undisclosed properties: Using public records to find hidden real estate
Finding all assets before a divorce is crucial. It ensures a fair settlement and protects your future economic well-being. By understanding your financial situation fully, you can work towards a more equitable outcome.