During divorce cases, both parties have to make full disclosure regarding their financial situation. Such disclosure is vital to make a fair division of assets and debts. However, there are cases where one party hides their assets to avoid sharing them with their spouse. In Indiana, the problem is taken seriously by the court. Hiding assets in divorce cases can have severe legal consequences. It may also have a significant impact in a case involving the division of property.
Knowing how courts handle the matter can help you protect your assets during your divorce.
Financial disclosure is required in a divorce
Indiana requires both parties to provide accurate and complete information about their financial condition. This includes all income, bank accounts, investments, retirement accounts, real estate holdings, and debts.
The information is necessary for the courts to make a determination about the division of their marital assets. Indiana is an equitable distribution state, which means that marital assets are divided fairly but not necessarily evenly.
If one party withholds assets or fails to disclose all their finances, the ability of the court to fairly distribute assets is compromised.
Common ways assets are hidden
Hidden assets can manifest themselves in different ways, especially when one party is in charge of managing the family’s finances. Some of the most common ways in which assets are hidden include:
- Transferring funds to unknown bank accounts
- Transferring funds to accounts belonging to family members and friends
- Failure to declare income from business
- Delaying bonuses and commissions
- Buying expensive items that can be sold later for cash
- Hiding digital assets
Assets can be hidden in many ways. They may not be easily recognizable.
Courts have tools to uncover hidden assets
When there is a presumption of hidden assets, lawyers and courts have several options to reveal them. One such option is the legal discovery process, which enables both parties to request financial documents such as financial records, tax returns, bank statements, and more.
Lawyers may even take a deposition from one party about their financial matters. Experts may be hired to investigate the financial disclosure. They examine financial documents and assess if any transfer of funds has been made in contravention of disclosure.
Consequences of hiding assets
Concealing assets during a divorce case can result in serious legal consequences. The Indiana courts have the power to deal with dishonest behavior in divorce cases.
If the court finds out that one party has been dishonest, the court can:
- Award more assets to the innocent party
- Impose financial sanctions
- Order the dishonest party to pay the attorney fees for the other party
- Reopen a previously decided divorce case if evidence of hidden assets comes to light
The court takes these steps to emphasize the importance of honesty and transparency in a divorce case.
Talk to a Danville, IN, Divorce Lawyer Today
Chris Arrington represents the interests of Danville residents during their divorce. Call our office today to schedule an appointment, and we can begin preparing your case right away.