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Why you should not hide assets during divorce

On Behalf of | Oct 29, 2024 | Divorce |

Going through a divorce can be an emotionally and financially challenging experience. Because of how expensive it might get, you might feel tempted to protect your assets by hiding them from your spouse. However, this approach may come with severe consequences and complications.

Below are reasons you must be transparent about your finances during the divorce process.

You may face legal and financial consequences

When you are navigating a divorce, it is essential to understand that hiding assets is not only unethical but also illegal. Courts expect both parties to provide full disclosure of their financial situation. If proven that you are concealing assets, you could face severe penalties, including:

  • Fines and legal fees
  • Loss of credibility in court
  • Potential criminal charges for perjury
  • Unfavorable settlement terms

The court may reopen the case if they discover hidden assets after your divorce is final. This could lead to additional legal battles and expenses.

Additionally, Michigan law requires the equal division of marital property. Spouses who hide assets may receive less than their fair share of assets.

You may suffer from personal consequences

Beyond the legal ramifications, hiding assets could have a lasting impact on your personal life. These may include:

Damaged relationships

Concealing assets may erode trust with your ex-spouse and with family members and friends who may become aware of your actions.

Impact on children

If you have children, your behavior during the divorce could affect their perception of you. It could also influence their future relationships.

Professional reputation

Depending on your career, hiding assets could damage your professional standing and future opportunities.

Being honest and transparent throughout the divorce process may make it more likely for you to achieve a fair settlement and maintain your integrity.

While hiding assets might seem tempting, the risks far outweigh potential short-term benefits. Consider seeking legal advice. An attorney could help you explore legitimate ways to protect your interests during divorce.