Consequences of Hiding Assets in a Tennessee Divorce

In a Tennessee divorce, assets are split fairly. This may mean a 50/50 split, 55/45, or a similar split. In any case, this means that all assets must be disclosed in a divorce to ensure an accurate and fair property division. However, many people try to circumvent this by hiding assets so their spouse cannot access them. They may withdraw money and put it in a secret bank account. They may take collectibles and give them to a family member for safekeeping.

Trying to hide assets is risky and usually backfires. Courts in Tennessee have broad authority to penalize concealment, adjust property division, and even pursue criminal remedies. Hiding assets during a divorce can result in serious consequences. They are outlined below.

Legal Penalties

Hiding assets in violation of court orders requiring disclosure can result in fines or other penalties. The court may impose monetary sanctions against the spouse who concealed assets.

Impact on Property Division

If the hidden assets are discovered, the court may award a larger share of marital property to the honest spouse. Transactions intended to hide or transfer assets (such as selling property below market value or transferring assets to relatives) can be reversed by the court.

Decreased Credibility

Divorce attorneys use discovery tools, subpoenas, and forensic accountants to uncover hidden assets. Banks, investment accounts, business records, and digital transactions may all be examined. Spouses are legally required to provide complete financial disclosure; failing to do so undermines credibility in court.

Effect on Custody and Support

Concealing assets can also affect child support or spousal support calculations, as income and property are factors in these determinations.

Criminal Liability

In extreme cases, concealing assets can be considered fraud or perjury, potentially leading to criminal charges. The judge may find the spouse in contempt of court, which could result in fines or imprisonment. This is especially true if the hiding involves falsified documents or intentional misrepresentation.

How to Uncover Hidden Assets

The discovery process allows both spouses to provide the requested financial documents to their attorneys. These documents typically include pay stubs, bank statements, retirement plan statements, property deeds, and details about debts. Through discovery, your attorney may identify assets your spouse has attempted to conceal.

If your spouse fails to provide certain documents during discovery, you can request them through a subpoena. The subpoena legally requires your spouse to produce the documents, and failure to comply can result in penalties imposed by the court.

The next step is a deposition, which requires your spouse to answer questions under oath. Lying about assets during a deposition can lead to legal consequences. Similarly, your spouse may be required to testify in court, and a judge can impose fines or jail time if they refuse to produce documents.

Protect Your Rights with Skilled Tennessee Divorce Representation

Many divorcing couples are unaware of how serious it is to hide assets in a divorce. It may not seem like a big deal, but it can lead to fines and even imprisonment. Honesty is the best policy. A divorce attorney from David L. Scott in Murfreesboro, TN, can help you keep what matters to you. Schedule a consultation to learn more. Contact us via (615) 896-7656 or online here.