Repercussions of Hiding Assets during Divorce

When dealing with a high net worth divorce, the process can be arduous and very complicated. It is important however to not become anxious and make a mistake that could jeopardize your validity. The most important thing you will have in the courtroom is your credibility. To put it plainly, the more honest and upfront you are, the faster this process can come to completion. Many people and even less than reputable attorneys will advise you to hide your assets. A popular option is to transfer money to third parties, friends, business partners, and family members. If your attorney recommends this course of action, they should be fired immediately. Lying in the court of law could not only hurt your case, but have you sacrificing much more than what was worth hiding in the first place.

Early in the divorce process, you will need to fill out a financial affidavit amongst other financial documents mandated by the law. Proper inventory and accurate information is critical despite the time consuming nature of the matter. Make sure all the recorded information is current and accurately recorded. Omitting information in these documents could position you to end up holding onto liabilities that wouldn’t have originally been there. You could also end up giving up more assets or paying more in alimony that would have otherwise been the case.

The best course of action, when preparing for a split, is to be transparent with your finances. Although you may end up “losing” more than anticipated, there shouldn’t be any extra problems reverberating from ill-conceived dishonesty. During litigation there is a process called “discovery” where each party searches for any assets the other is in possession of. Both sides are obligated to turn over financial information to the other side. During discovery, you are under oath, and lying in a court of law is highly discouraged. If you are discovered hiding assets, this can be considered perjury. Committing perjury is a punishable crime. You could also face sanctions on top of perjury charges. Think about it from this angle, you might give a little more than you preferred during distribution, but at least you walk away with a clean record.

All in all, hiring a good divorce attorney will give you access to a credible source specializing in these types of matters. If you’re in Houston, Texas, you need an attorney with expertise in high-net worth divorces, an attorney who will protect your interests and seek the fairest divorce settlement possible. That attorney is Lacy LaFour and her team at LaFour Law. Reach them at http://lafourlaw.com/contact or 713.223.7700, today.

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