If your marriage ended on bad terms, you may be feeling anger or resentment towards your ex-spouse. When it comes time to initiate the divorce proceedings and divide your property, you may consider selling some of your assets in order to keep your ex from getting them. Is this okay?
Selling is hiding, in the eyes of the law
During the divorce proceedings, it’s important to be honest and transparent about all of the assets that are on the table. It may be tempting to employ certain tactics, such as:
- Selling certain items
- Gifting items to friends or family (with the hopes of getting them back later)
- Transferring money to a third-party account
- Artificially lowering the value of your business
All of these types of actions are considered a form of asset hiding, which is not allowed. In addition, selling marital property during a divorce does not prevent that property from getting counted in the divorce. Any money earned from the sale will still be calculated in as marital property and can therefore be divided.
Penalties
Hiding assets during a divorce – by selling property or by any other means – can lead to serious consequences in your divorce. If you fail to disclose all of your assets to the court, you could be held in contempt of court – which may include facing fines or even jail time. In addition, failing to be honest during the court proceedings could lead the judge to rule in your ex-spouse’s favor.
Selling, or otherwise hiding, assets during a divorce may seem like a good option. However, it’s important to understand that attorneys have a variety of tools at their disposal to trace hidden assets. Ultimately, it’s a risk that could really hurt you in the long run.
