Divorce can be a challenging and emotionally taxing process, especially when financial matters come into play. Divorcing couples should disclose all assets during the divorce proceedings.
However, if one spouse chooses to hide assets, it can lead to significant consequences.
Consequences of hiding assets
Georgia has 2.2 divorces per 1,000 people, and hiding assets during a divorce is a form of fraud. If a court finds that a spouse hid assets, the court may impose severe penalties. These penalties can include fines, sanctions or even criminal charges in extreme cases.
Impact on division of assets
In Georgia, marital assets typically get equitable distribution during a divorce. This means fair but not necessarily equal division. However, if one spouse hides assets, it can unfairly skew the distribution in their favor, leaving the other spouse at a financial disadvantage.
The court may order the non-disclosing spouse to pay the other spouse’s attorney fees incurred in uncovering the hidden assets. The court may also adjust asset division to favor the innocent party.
Discovery process
The discovery process is an important step in uncovering hidden assets. This process involves both spouses providing full financial disclosure, including bank account statements, tax returns and other relevant financial documents. If the parties identify discrepancies between the disclosed assets and the actual assets, further investigation may occur.
Spouses who attempt to conceal assets are likely to face consequences. It is important for divorcing individuals to be honest and transparent about their financial situation to ensure a fair and equitable division of assets.
