Hiding Assets Is A Terrible, No Good, Very Bad Idea

For those with considerable wealth and assets that suddenly find themselves facing the prospect of divorce, there is often an instinct to try and secure as much as they can before a court begins evaluating each spouse’s worth.

In these cases, it can be very tempting for a spouse to try and hide money and other assets from the other in the hopes that they will not be found and thus subject to the required division of assets that accompanies a typical divorce.

To be clear: Trying to hide assets is a terrible idea that is almost guaranteed to fail. It can also lead to serious legal trouble if you are caught.
 

The Discovery Process

While there is a slim chance a wealthy spouse will get away with hiding assets before the discovery phase of the divorce begins, it is very unlikely.

The legal process of discovery is a way for divorcing couples to gather information from each other and related third parties (like banks, companies, employers, etc) to ascertain income and debt obligations. During this process each spouse is compelled to turn over relevant financial information under oath.

It is also common for spouses to be deposed in live testimony, also under oath, about assets and property.

The reason it’s so difficult to hide assets is that in most cases, both spouses are aware of the wealth and assets each possess. If one spouse had a million dollars right before a divorce, but then testifies they only have half of that, it’s pretty clear that they’re trying to hide something.

Additionally, in cases of high net-worth individuals, it’s common for divorce attorneys to employ specialized investigators to discover any assets one spouse may be attempting to hide.
 

Avoid Perjury, Don’t Lie

If a spouse does attempt to hide their assets and submits both written documents and live testimony under oath with false information, they can be charged with perjury if caught.

Perjury is a punishable crime, and if the lying spouse is caught by the courts in the lie, they will likely be subjected to severe monetary fines and other punishments in addition to charges of perjury.
 

Hiring The Right Attorney

The best way to protect yourself and your assets during a divorce is to hire a competent divorce attorney who has experience with high net-worth individuals and can help protect from overzealous spouses intent on being financially punitive.

If you do decide to attempt to hide assets before or during the divorce process, be aware that you face very real legal risks that your attorney will not be able to protect you from in the event you are caught.