Divorce is one of the most stressful events a person can experience, and it causes people to make poor decisions they may not otherwise make in less stressful circumstances. Divorce can also cause a once-peaceful couple to turn against each other and take extreme measures to protect their own interests.

Hiding assets during divorce is one of these extreme measures. Though not necessarily common, hiding assets during divorce proceedings might be tempting for one or both spouses to ensure their hard-earned finances are protected. However, hiding assets is extremely unwise and carries serious consequences if and when the deception is uncovered.

At Ohiku Law, our expert team help high net worth individuals navigate the complex divorce process. We have seen it all when it comes to divorce and are here to offer expert advice to individuals and couples in Milwaukee divorce law and family law. Read on to learn more about why people might try to hide assets during divorce and the consequences for doing so.

Why might someone try to hide assets during divorce? 

During divorce proceedings, both spouses are required to fill out a comprehensive financial disclosure statement and sign it under oath. The reason for this statement is to give the court a full picture of the financial situation of both sides to help inform the judgement process.

As stated above, divorce can be extremely stressful and put people in a position where they are worried about protecting their finances. This causes some people to make the extremely poor decision to try and hide their financial assets. Alternatively, one spouse may feel they can “get back” at the other by concealing the true nature of their finances, or otherwise gain an advantage in divorce proceedings by not disclosing the true nature of their financial assets.

How does someone hide assets during divorce? 

There are several ways someone might try to hide financial assets during divorce. One way is to intentionally undervalue marital property or assets, such as a home, vehicle, retirement savings, or shared business. Another way is to open a secret account and move money from a shared and/or disclosed account into this secret account. A person may also overrepresent the amount of debt they carry and/or underreport their annual income.

What are the consequences for hiding assets during divorce? 

As referenced above, the financial disclosure statement required during divorce proceedings is signed under oath. This means that lying on this statement is illegal and known as “perjury.” If it is discovered that an individual has lied on their financial disclosure statement, it is up to the court to determine the consequences. The court may rule that the offending spouse has to pay a portion or the entirety of the other’s legal fees or that they have to pay a fine. In rare cases, the court may rule that the offending spouse should serve jail time.

What should I do if I think my spouse is hiding assets?

If you are concerned your soon-to-be-ex-spouse is hiding assets during divorce proceedings, the best thing you can do is hire an experienced Milwaukee divorce attorney like Odalo Ohiku. We have years of experience understanding financial disclosure documents and can spot red flags that may indicate your spouse is hiding assets. We can give you expert advice and work with the court on your behalf to uncover any deception that is taking place, ensuring appropriate consequences are handed down and your assets and interests are protected. In some situations, we may recommend hiring an investigative accounting professional to review the documentation for signs of fraud.

At Ohiku Law, our team of divorce law and family law experts are here to provide you with expert divorce, custody, dispute resolution, and criminal law advice and advocacy. If you have questions about your particular situation and are wondering if Ohiku Law is the right fit for you, give us a call to schedule a discovery conversation. We help high net worth individuals and families across Milwaukee and surrounding communities protect their interests and their future.