It’s no secret that one of the leading causes of divorce is finances. As such, when going through a divorce, one of the most contentious aspects for many couples is dividing assets. Because couples are often unable to agree on an outcome, the court will step in to divide their shared marital assets. However, this may not be fair if one spouse is hiding assets. If you believe your spouse is concealing assets, this blog explores what you should know about these legal matters, the penalties they can face, and the importance of working with a Monroe, Louisiana property division lawyer to help you navigate this process and fight for the assets you deserve.
How Does Louisiana Divide Marital Assets?
First and foremost, it’s important to understand that Louisiana adheres to the community property method of distributing assets among a couple going through a divorce. This means that all assets deemed marital, meaning they were obtained during the marriage or they were combined with marital assets, will be split evenly among the parties. This differs from other states that utilize the equitable distribution method, in which factors are examined to divide assets between the spouses based on each party’s contribution to the marriage. Equitable distribution focuses on splitting the assets fairly rather than evenly.
Because Louisiana is a 50/50 asset distribution state, some people going through a divorce may attempt to hide or conceal assets. In many instances, this is because one spouse feels as though the even distribution of assets under the community property laws is unfair. As such, they may underreport income, manipulate the value of property, or transfer assets to friends and family during the divorce to receive a better outcome than their spouse. In other instances, the concealment of assets may be used as a way to “punish” a spouse for their decision to pursue a divorce or for their actions leading up to the divorce.
What Happens if My Spouse Is Found Hiding Assets?
If you have reason to believe your spouse is concealing assets from you during your divorce, the most important thing you can do is immediately connect with an experienced attorney if you have not done so already. Your attorney can aid you in uncovering any concealed property through the analysis of documents exchanged during the discovery process, and, if necessary, enlist the assistance of a forensic accountant. A forensic accountant is a financial expert who can examine documents and accounts to look for inconsistencies and uncover hidden assets, which is especially helpful in a high-net-worth divorce.
In the event your spouse is discovered hiding assets during your divorce, it’s critical to understand what can happen. In some instances, your spouse may be held in contempt of court or for perjury if they lied about the assets under oath. These can carry hefty fines and even potential time in jail. Additionally, the court can order your spouse to pay your legal fees and even relinquish the assets they attempted to conceal.
When you are going through a divorce, ensuring you take the necessary steps to protect yourself and fight for a fair outcome is critical. At Breithaupt, DuBos, & Wolleson, LLC, our firm understands how difficult these matters can be to navigate. That is why our firm will do everything in our power to assist you in the fight for the best possible outcome. Contact us today to learn how we can help you.