Considering divorce can bring out surprising behaviors, even for honest people. You might think about stashing assets away, like a hidden bank account or an undeclared stock portfolio. While this idea might seem tempting, it is a serious legal error.
New Jersey courts have effective ways to find hidden assets and punish those who try to conceal them. Anyone attempting to hide assets in a New Jersey divorce can face severe consequences..
Your assets are not secret
During a New Jersey divorce, a crucial phase called “discovery” takes place. In this formal legal process, both spouses must reveal all their financial information, including bank records, tax returns, property deeds and much more.
Skilled attorneys and forensic accountants are adept at spotting inconsistencies. They use subpoenas, depositions, and detailed financial analysis to find any discrepancies and track down hidden money. One thing you can usually count on is that a “secret” bank account will eventually come to light.
Potential penalties: Forfeiting hidden assets
New Jersey’s principle of equitable distribution guides the fair division of marital assets. Fair does not always mean equal. If you fail to disclose assets, a court can punish you. Instead of a 50/50 split, the court can award the entire hidden asset to your spouse.
For example, if you hide a $50,000 investment account, you could lose it all. Your spouse would then receive the full amount as a penalty for your dishonesty.
Beyond the asset: Contempt and financial repercussions
The consequences of hiding assets go far beyond losing the asset itself. This act violates a court order and shows blatant dishonesty, which can lead to contempt of court charges. A judge can impose:
- Fines
- Legal sanctions
- Even jail time in severe cases
You will also likely pay your spouse’s attorney fees and legal costs related to uncovering your hidden assets.
High risk, low reward
Trying to hide assets in a New Jersey divorce is like trying to build a house on quicksand. The legal and financial repercussions are severe. Complete honesty and transparency, guided by experienced legal counsel, offer the best path forward.
Likewise, if you suspect your spouse is hiding assets but lack proof, you should share your concerns with your lawyer. They can use the legal discovery process to investigate your suspicions and uncover the truth.
