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What are the consequences of hiding assets?

by | Jun 17, 2020 | Divorce |

Connecticut couples are under a lot of stress and pressure during divorce. You must work out many personal and financial issues at the same time. The mental and emotional toll of the process is often difficult for people to get through.

In these moments of high stress, it is often tempting to make poor decisions. These choices may feel beneficial in the short term. But in reality, it causes damage instead. One of these choices may include trying to hide assets from your spouse. But this is not a good plan.

Committing perjury through asset hiding

Forbes discusses the potential consequences of hiding assets. When you start the divorce process, you sign a financial affidavit. This tells the court that you are being honest about the finances you report. You must tell the truth to the best of your ability. This means accidentally leaving out assets does not count against you.

But what if you leave assets out on purpose? Then you are in violation of the affidavit. This means you have committed perjury. The court can hold you in contempt. Penalties for perjury differ from state to state. In some, you may face a fine. In others, you could even end up in jail.

How the judge handles asset hiding

On top of that, the judge gets to decide what to do with your assets. Many judges will simply force you to divide your assets in an even way. But cases in the past have involved judges giving more than half to an ex-spouse. On a whole, when people try to hide assets, you lose more than you would have otherwise.