Hidden assets can significantly complicate the continuation of an ongoing divorce. When one spouse conceals property, income or other financial resources, it can undermine the equitable distribution of assets.
New Hampshire operates under an equitable distribution system, meaning that courts aim to divide marital assets fairly. However, hidden assets make it difficult to determine what a fair division should look like.
What types of assets might be hidden?
The most common types of hidden assets include bank accounts, stocks, bonds, business interests and even property held overseas. Some individuals might underreport their income or transfer property to family members. These actions can delay the divorce process and lead to costly investigations.
How do courts uncover hidden assets?
Before proceeding with asset division, the court thoroughly examines the couple’s asset profile. Financial documents like tax returns, bank statements and pay stubs may offer clues about missing assets. New Hampshire courts may also allow discovery procedures to investigate potential hidden assets. These methods can help locate assets that one spouse might be attempting to conceal.
What happens when there are hidden assets?
The impact of hidden assets goes beyond delaying the divorce. It can lead to an unfair settlement. If one spouse successfully hides a portion of the marital estate, the other spouse may receive less than what they rightfully deserve. This can cause long-term financial harm and resentment between ex-spouses.
What does the court do about hidden assets?
New Hampshire courts take hiding assets seriously. If the court catches a spouse concealing property or income, there will likely be serious penalties. This could include awarding a larger portion of the discovered assets to the other spouse. The court could also reopen the case if hidden assets come to light after the conclusion of the divorce.
Hidden assets can turn a straightforward divorce into a lengthy, expensive and contentious process. The discovery of hidden assets can lead the court to reevaluate asset division to favor the spouse affected by concealment. The prolongment of divorce and the amount of burden created is not worth the trouble of trying to hide assets from one’s spouse.
