Dividing property in a divorce can be complicated at the best of times. However, when one spouse hides money or valuable items, the process becomes even more difficult.
Hidden assets can lead to unfair outcomes and delay the divorce process. Here are some key points to consider.
What counts as a hidden asset?
Hidden assets are items or funds a spouse tries to keep secret during a divorce. This may include cash, bank accounts, investments or valuable property like jewelry or vehicles. In Kentucky, all marital property must be disclosed and fairly divided. Hiding assets can result in an unequal or unjust distribution.
How assets are commonly hidden
People may hide assets in several ways. A spouse might underreport income, move money to a separate account or give items to friends or family to hold temporarily. Others may delay receiving bonuses or commissions until after the divorce is finalized. Some even purchase expensive items and claim they are worth less than they really are.
The impact on property division
Kentucky follows the rule of equitable distribution. This means the court divides marital property in a way that is fair, but not necessarily equal. If a judge finds that one spouse has hidden assets, it can influence how the court divides the remaining property. In some cases, the court may award a larger share to the other spouse to make up for the dishonesty.
Hidden assets can also lead to legal consequences. If a spouse lies on a financial disclosure form, they may face penalties or other sanctions from the court.
Uncovering hidden assets takes time and can make the divorce process more stressful. Accurate financial information is essential to obtain a fair outcome in any divorce. Seeking legal guidance is also crucial.