What Happens If Your Spouse Hides Assets During Divorce in Indiana?

Divorce proceedings require complete honesty from both parties, especially regarding finances. Unfortunately, it’s not uncommon for one spouse to hide assets in an attempt to gain an unfair advantage. This action is illegal and carries significant consequences. If you suspect your spouse is not being truthful about their financial situation, the experienced family law attorneys at McNeelyLaw are here to help protect your rights. When a spouse hides assets during a divorce in Indiana:

• The court can order an unequal division of property to favor the honest spouse.
• The dishonest spouse may be ordered to pay the other’s attorney fees.
• They could face contempt of court charges, leading to fines or even jail time.
• Criminal charges for perjury are also a possibility.

What Are My Legal Obligations for Financial Disclosure in Indiana?

Indiana law requires full and honest financial disclosure from both spouses during a divorce. According to Indiana Code § 31-15-7-4, the court presumes that an equal division of the marital estate is just and reasonable. To achieve this, both parties must provide a complete picture of their assets and debts. This transparency is not optional; it’s a legal mandate to ensure a fair outcome. Failing to disclose all assets is a direct violation of this legal duty and can lead to serious legal trouble.

How Do Spouses Typically Hide Assets?

A spouse determined to conceal assets may use several tactics to underrepresent their wealth. Being aware of these common methods can help you identify potential red flags in your own divorce proceedings.

Some common ways assets are hidden include:

• Business Manipulation: Using a business to hide personal assets, such as paying non-existent employees or delaying large payments or deals until after the divorce is finalized.
• Transferring to Others: “Gifting” money or property to friends or family members with the understanding that it will be returned later.
• Undisclosed Accounts: Opening new bank accounts or credit cards without the other spouse’s knowledge.
• Deferring Compensation: Delaying bonuses, stock options or promotions at work until the divorce is complete.
• Cash Withdrawals: Making large, frequent cash withdrawals that are difficult to trace.

How Are Hidden Assets Uncovered?

The legal process provides a formal method for uncovering hidden assets, known as “discovery.” During discovery, your attorney can use several tools to investigate your spouse’s finances thoroughly. This process can include requesting financial documents like bank statements, tax returns and business records. Your attorney can also submit written questions (interrogatories) that your spouse must answer under oath or conduct depositions, which involve answering questions in person before a court reporter. In complex cases, hiring a forensic accountant may be necessary to trace funds and identify discrepancies that point to concealed assets.

What Are the Penalties for Hiding Assets?

Indiana courts do not take kindly to spouses who attempt to defraud the legal system by hiding assets. The penalties for such actions are severe and are designed to punish the misconduct and compensate the wronged party. If a spouse is caught hiding assets, they can face contempt of court charges, which may result in fines and, in some cases, imprisonment. The court may also order the dishonest spouse to pay for all attorney fees and court costs incurred by the other party while searching for the hidden assets. Furthermore, the judge has the authority to award a larger portion, or even all of the hidden assets, to the innocent spouse. Lying under oath about assets can also lead to criminal perjury charges.

Seek Guidance from a Knowledgeable Attorney

Navigating a divorce is challenging, especially when you suspect financial dishonesty. An experienced family law attorney is your most important ally in ensuring a fair and just outcome. At McNeelyLaw, our attorneys are skilled in the discovery process and know how to uncover hidden assets to protect your financial future. With a proven track record of success in complex divorce cases across Indiana, we are committed to providing outstanding client service. Contact us today to schedule a consultation.