Divorce requires honesty, especially about money. If one spouse hides assets-like cash, property, or income-it can impact how the court divides everything. Virginia law demands complete financial disclosure from both parties. Lying about money can lead to serious legal trouble.
Common methods of hiding assets
Individuals may try to obscure assets by transferring them to friends or relatives, opening undisclosed bank accounts, underreporting income, or deferring bonuses and commissions. Some make large cash purchases to avoid creating a paper trail. These tactics create the illusion of having fewer assets than actually exist.
Legal response to concealment
When a court discovers that one spouse has intentionally hidden assets, it can impose sanctions and adjust the asset division to account for the deception. Virginia applies an equitable distribution standard, meaning assets are divided based on fairness, not necessarily equally. If a party has engaged in fraudulent behavior, the court may award a larger share of the marital estate to the other spouse. In addition, the court may order the dishonest party to pay attorney’s fees or hold them in contempt.