Title: The Consequences of Hiding Assets in Your Divorce: A Guide for Nevada Residents
Divorce is a difficult and emotionally charged process, especially when it comes to dividing assets. Unfortunately, some spouses may try to hide assets during the divorce proceedings in order to avoid sharing them with their former partner. This is not on
Getting divorced can be a trying time, especially when significant assets are involved. It's common for someone to be tempted to hide assets during this time. They believe that doing so will keep their estranged spouse from getting their property.
While this strategy might seem beneficial, and in the short term, it might be. Ultimately, however, hiding assets during a divorce causes only more trouble. Doing so can lead to serious penalties.
What Is Considered Hiding Assets During a Divorce?
Nevada defines concealing assets in a divorce as intentionally:
- Failing to disclose property
- Transferring property to hide it from your spouse
- Disposing of property to deprive your spouse of it
Common Methods for Concealing Assets in a Divorce
Hiding Cash
People can physically hide cash in undisclosed locations to prevent it from being divided.
Buying New Possessions
Some purchase new items such as jewelry, artwork, or vehicles. These acquisitions could be overlooked during asset division, and the purchaser could sell it after the divorce finalizes.
Paying Off a Family Loan
To avoid including certain assets in the divorce settlement, individuals may pay off loans to family members or close friends, expecting to get the money back after the divorce is finalized.
Transferring Money to Trusts or Gifts
Those who don't own a business may set up trusts, or they can gift money to someone else. This makes assets more difficult to track, and this person could retrieve the property later.
Offshore Accounts
Transferring money to offshore accounts makes it challenging to trace and access these assets.
Not Reporting Cash
Failing to report income or cash transactions involves underreporting earnings or engaging in cash-only transactions to avoid detection. After the divorce, the spouse can simply retrieve the cash they didn’t report and use it for themselves.
Concealing Assets in Bank Accounts
Individuals may try hiding assets in bank accounts that their spouse is unaware of or cannot. These hidden accounts can include savings accounts, safe deposit boxes, or offshore banking.
The Financial Consequences for Hiding Assets During a Divorce
If a judge discovers that you have been concealing assets, you can face serious financial consequences.
Depending on the severity of your actions, you may be forced to pay your spouse's legal fees. Judges could also charge you fines or make you pay more in alimony. Sometimes, those who hide assets are forced to hand over the very property they tried to conceal.
Typically, Nevada splits marital assets evenly between spouses. However, if a spouse is guilty of hiding assets, they could lose a greater portion of the assets, leading to an imbalanced property division.
By hiding assets, people only delay the inevitable. When caught, they lose the assets anyway, when they may have been able to keep at least a portion.
It's better to be upfront and honest during divorce proceedings, even if it means giving up certain assets. That way, you can move on from the divorce with your finances and reputation intact.
Legal Consequences for Hiding Assets During a Divorce
In Nevada, concealing assets during a divorce can result in criminal charges and steep fines.
You could be charged with:
- Contempt of Court: If a spouse is found to have hidden assets, they may be held in contempt of court. This can result in fines, sanctions, or even jail time.
- Perjury Charges: If a spouse lies under oath about the existence or value of assets during divorce proceedings, they can face perjury charges. Perjury is a criminal offense that can lead to fines and imprisonment.
Ways to Prove Your Spouse Is Hiding Assets in Your Divorce
Hire a forensic accountant to investigate your spouse's financial statements. They may uncover discrepancies and trace funds to uncover any hidden assets.
Study your spouse’s lifestyle and spending habits. If they suddenly start making large purchases or have unexplained expenses, it could mean they are trying to hide assets.
Secure financial documents. Carefully examine your financial statements, including tax returns, bank statements, credit card statements, and loan documents. These can provide clues about hidden assets or suspicious financial transactions.
Follow the money trail. Look for any unusual financial activity, such as large cash withdrawals, transfers to unknown accounts, or purchases of expensive assets. Monitoring spending could reveal concealed assets.
Monitor social media and online platforms. People sometimes inadvertently reveal their hidden assets through their online profiles. Keep an eye on your spouse's online activities for any signs of undisclosed assets.
How to Protect Yourself from Unintentionally Hiding Assets in Your Divorce
Be organized and transparent. Keep clear records of all your assets and financial transactions, and make sure to disclose everything to your spouse and their legal team.
If you have concerns about any assets or financial information, address them directly with your attorney. Try to find a solution that works for both parties.
As with most legal situations, being honest and upfront is the best protection against allegations.
Wasteful Dissipation
When a spouse conceals assets in their divorce, they want to access these funds for themselves later. In some cases, spouses can be guilty of something even more insidious: wasteful dissipation.
Wasteful dissipation is the reckless or unnecessary spending of marital assets during the breakdown of the relationship. This spending can include everything from extravagant vacations to expensive gifts to others, all at the expense of the couple's shared finances.
The goal of wasteful dissipation is to simply harm the other spouse. Instead of trying to secretly keep property, the wasteful spouse is just trying to leave the other with less after the divorce. They don’t plan to keep any of this property, so they blow it in ways that can’t be recovered.
Like hiding assets, wasteful dissipation can lead to financial consequences in a divorce. The big spender could be forced to give up more assets or pay higher amounts of spousal support.
If you suspect your spouse of wasteful dissipation, track their spending. Remember, anything tangible they buy could be divided in the divorce. Therefore, you are looking for huge expenses that can’t be recovered. Examples include vacations, hotel expenses, gifts for others, extravagant restaurant bills, money spent on extramarital affairs, etc.
Ford & Friedman can help defend your rights if your spouse has been hiding or wasting assets in your divorce. To meet with our team, schedule time with us online or call our office at (702) 904-9898.
ly unethical but also illegal. If you suspect that your spouse is hiding assets, it is important to take action and seek legal counsel. In this blog post, we will discuss the consequences of hiding assets in your divorce and provide useful tips for those who are going through this process.
1. What constitutes hiding assets?
Hiding assets can take many forms, including transferring assets to a third party, undervaluing assets, or delaying the disclosure of assets. It is important to understand what constitutes hiding assets in your divorce and how to identify signs of it.
2. The legal consequences of hiding assets
Hiding assets during a divorce is not only unethical but also illegal. The court can impose severe penalties, including fines and imprisonment. It is important to understand the legal consequences of hiding assets and how to protect your rights.
3. How to uncover hidden assets
If you suspect that your spouse is hiding assets, it is important to take action and uncover the truth. This can involve hiring a forensic accountant or conducting your own investigation. We will provide useful tips for uncovering hidden assets and protecting your financial interests.
4. The impact of hiding assets on spousal support and child support
Hiding assets can have a significant impact on spousal support and child support payments. If the court discovers that a spouse has hidden assets, it may adjust the support payments accordingly. We will discuss how hiding assets can affect spousal support and child support and what you can do to protect yourself.
5. How a family law attorney can help
Navigating the divorce process can be overwhelming, especially when it comes to dividing assets. A family law attorney can provide valuable guidance and representation throughout the divorce proceedings. We will discuss how a family law attorney can help you protect your financial rights and ensure a fair division of assets.
In conclusion, hiding assets during a divorce is not only unethical but also illegal. If you suspect that your spouse is hiding assets, it is important to take action and seek legal counsel. At Ford & Friedman, we have extensive experience in handling complex divorce cases, including those involving hidden assets. Contact us today to schedule a consultation and learn how we can help you protect your financial interests.
Keywords: hiding assets, divorce, legal consequences, uncovering hidden assets, spousal support, child support, family law attorney, Ford & Friedman.
Sources:
- https://www.nvbar.org/wp-content/uploads/Nevada-Lawyer-Article-The-Hidden-Assets-Dilemma.pdf
- https://www.thespruce.com/what-to-do-if-you-suspect-hidden-assets-1102436
- https://www.investopedia.com/articles/personal-finance/040115/how-look-hidden-assets-during-divorce.asp