Why it’s Never a Good Idea to Hide Assets and Income During Divorce

Divorce agreement paperwork being signedUnfortunately, it’s common for divorcing spouses to hide their income and/or assets. The reason for this is that spouses who have less income would only have to pay less alimony and child support. In addition, if the assets aren’t disclosed, the court won’t be able to divide them during property division.

Disclosures, Lies, and Finding Hidden Income and Assets

There are many types of lies that spouses could make on disclosures. They could lie about the amount of assets, an asset’s real value, and how they bought or came across an asset. Divorce lawyers in Albuquerque and other cities in New Mexico added that some spouses even hide the fact that they own some assets at all or hide relevant paperwork that could reveal the lies.

Usually, when spouses lie on financial disclosures, they’re looking to hide or minimize income or assets. They might also attempt to undervalue the other spouse’s household contributions and misrepresent the use of their joint finances. Likewise, they might even accuse the other spouse of stealing money from a joint business interest or account.

Proving Lies When a Spouse Hides Their Assets

A great way to prove the lies of a spouse is to compare information from their disclosures against the information found on bank statements and other paperwork containing information about income and assets. A lawyer could also request the lying spouse to produce specific documents that would be relevant to the claim during discovery. This would be useful when the spouse has all the relevant documents and refuses to share them.

The other spouse could also hire a private investigator. Private investigators have access to otherwise private information that could aid in exposing financial interests in business and assets. They could also conduct surveillance on the lying spouse and interview co-workers, neighbors, and other relevant witnesses who might have valuable knowledge of the lying spouse’s deceit.

If the court finds that the spouse lied in the disclosures, and continued to lie while they were under oath, they could be charged with perjury. The judge would order penalties on the deceitful spouse, and depending on the severity of the spouse’s deception, might even order that the other spouse gets most or all of the hidden assets and income.