What assets can I accidentally hide during the divorce?

On Behalf of | Jun 4, 2024 | High Asset Divorce |

Dividing property during divorce is a straightforward process in theory, considering the law’s explicit provisions. But as scenarios vary based on each divorcing couple’s financial situation, this step can also have complications. If you and your former spouse own substantial high-value assets during the marriage, you may become more vulnerable to legal issues involving property division.

This step usually uses financial disclosures to determine each party’s value and what they can receive after the process. When organizing these disclosures, it is possible to hide or overlook properties by accident without adequate guidance and counsel. It typically happens for assets without clear value unless appraised or evaluated appropriately, including the following:

  • High-value belongings, such as firearms, luxury clothes, bags and shoes
  • Equity built over time through leases, such as with cars
  • Income-generating assets that could have complex ownership terms, such as patents or royalties
  • Other items that can hold value, including antiques, artworks or sports collectibles
  • Non-liquid assets, including stocks, shares or bonds

Failure to disclose these properties can have severe legal repercussions. Still, penalties may only apply depending on the circumstances. Sometimes, there are other ways to address these issues if you did not deliberately hide anything, usually established through supporting statements and documents.

Taking measures to avoid concealing assets

Creating comprehensive financial disclosures could be vital during a high-asset divorce. It can be a lengthy process that requires extensive effort from you and your former spouse. Fortunately, seeking legal counsel can help you take measures against accidentally hiding properties. Having an experienced person to help you prepare diligently can also be beneficial when organizing your disclosure, especially if you want to avoid legal penalties for undervalued or potentially hidden properties.