Dividing property in a divorce depends on honesty. In California, both parties are required to fully disclose all property and finances. Hiding assets violates this duty and can have serious consequences.
Hidden assets can throw off the entire divorce process and leave you with less than you deserve. California is a community property state, meaning all assets acquired during marriage are typically evenly split. Here are some crucial points to remember.
What are hidden assets?
Hidden assets can include property, income and more that one spouse tries to keep secret during a divorce. This may include cash, bank accounts, real estate, business income or even valuable items like jewelry or art. Some people transfer assets to friends or family. Others underreport income or overstate debts to avoid a fair division.
How hidden assets impact the divorce process
Since most property acquired during the marriage must be divided equally, that means if a spouse hides assets, it can lead to an unfair settlement. The court may reopen a divorce case if hidden assets are discovered later. Judges can also penalize the dishonest spouse by awarding a larger share of the hidden property to the other party or imposing fines.
If you think your spouse is hiding assets, there are legal steps you can take. Financial records may be obtained through the court, and forensic accountants can help trace missing property or income.
California courts take financial disclosure seriously. As noted, there can be penalties for a spouse who is found to have not fully disclosed or to have inaccurately disclosed their financial status. If you suspect your spouse is hiding assets, having experienced legal guidance will help you protect your right to a fair settlement.