Secret assets and divorce

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Divorce can hurt one’s pockets in more ways than one. Although illegal, hiding the real value of one’s assets remains as one of the most utilized ways to save money. However, the practice can have serious repercussions, and may actually place the erring party in a worse financial situation.

Upon marriage, both husband and wife are required by law to reveal the extent and value of their properties, especially if they are combining their assets. But not everyone complies with the rules. In some instances, one or both parties use tricks to lie about the real value of their properties.

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Admittedly, this can pose certain advantages especially to men when their marriage does not fare well and ends up in divorce. Husbands typically shoulder child support and may even be required by the court to pay alimony. These can cause havoc to one’s financial resources. A husband who has not disclosed the entirety of his assets is entitled to resources that he is not mandated to give away post-divorce.

The practice breaks the oath represented by the Financial Affidavit signed during marriage. A person proved to have falsely disclosed assets may face punishment during the divorce. The punishment can range from being required to shoulder the other party’s legal fees to being incarcerated. Needless to say, the punishment will depend on which state the offence was committed.

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The adage that proclaims honesty as the best policy will never get old because of practices like this. Siding with the law is best, especially in matters involving finance, as illegal practices that promise gains may actually yield nothing but losses.


Michael Kelly is an attorney based in California. He heads Kelly, Fernandez & Karney, a firm composed of experts in divorce and family law. The firm’s official website offers information about how its lawyers can help you.