5 Kinds of Hidden Assets In Divorce Settlements

The law requires that couples going through a divorce disclose all their assets and debts. However, despite this requirement, some couples still can’t resist the temptation to lie so as to keep these assets to themselves.

Some people are so adept at hiding their assets that one may have to hire a family attorney to expose them. Below are some interesting facts about hidden assets in divorce settlements that you might want to be aware of.

1. Most Common Types of Hidden Assets Are Liquid

Liquid assets, such as cash, mutual funds, bonds, stocks, travellers’ checks, annuities, bonds, etc., are the easiest to hide. A good family lawyer will not take the asset list as a definitive list of all the assets a couple owns. Before signing the divorce settlement agreement, always make sure that both liquid and fixed assets are included on the list.

2. Many Couples Lie about Their Assets

In most cases, the person most likely to lie about assets is the one in charge of the day-to-day finances and assets. If you have a feeling that your partner is not providing full disclosure of the family assets, you are most likely right. In such a case, before signing the divorce assets agreement, do a bit of homework and you might unearth assets that are not on the divorce settlement list. Always remember that you qualify for 50% of the family assets. Make sure that this is based on all the assets a couple owns, both fixed and liquid.

3. It’s Illegal to Hide Assets in a Divorce Settlement

There are legal consequences for the couple concealing assets in a divorce settlement case. These consequences, however, vary from one case to another and depend largely on the kind of undisclosed assets, how these assets were concealed, and other factors.

Among the consequences an asset-concealing partner can potentially face include losing ground in a divorce settlement case, losing a section or claim to the undisclosed assets, being asked to pay legal fees for both parties, and being sued for fraud. In some cases, a judge may award all hidden assets to the party from whom they were hidden.

4. High Asset Divorce Settlement Cases Have Higher Incidences of Hidden Assets

When the stakes are high, the chances that the party who controls the family assets would want to hide some of them from the other partner are very high. What you thought was a very good deal at first may later turn out to be grossly unrepresentative of the true picture. Always do your due diligence and don’t be in a hurry to sign the divorce asset settlement agreement until you are fully convinced that the asset list is comprehensive.

5. You Can File a Post-Judgement Motion to Set Aside a Previous Settlement Agreement

If one party later finds out that their partner concealed a portion of the assets, despite having signed a previous settlement agreement (PSA), they can apply to set aside the previous agreement and renegotiate the settlement in view of the expanded assets list. However, this should be done as soon as the discrepancy is discovered.

Going through a divorce is tough. Negotiating a divorce asset settlement is even tougher, especially when one of the parties decide to hide some assets to keep them off the negotiation table. It’s important that one proceeds with a divorce asset settlement case with a sober mind. Don’t allow emotions to get the better of you. You should also not be in a hurry to sign the divorce asset agreement until you are fully convinced that everything has been accounted for.