Frequently Asked Questions
We know family law can feel overwhelming—and sometimes, just getting clear answers makes all the difference. Below you’ll find thoughtful responses to the questions we hear most often, designed to help you feel informed, prepared, and empowered as you move forward.
What happens if one spouse tries to hide assets during divorce?
If one spouse tries to hide assets during a divorce in North Carolina, there can be serious legal consequences. North Carolina is an equitable distribution state, meaning that marital assets must be divided fairly, though not necessarily equally. Hiding assets violates the principles of fairness and can lead to penalties.
Here’s what can happen if a spouse is caught hiding assets:
1. Legal Consequences & Court Sanctions
- If a spouse is found to have hidden assets, the court can sanction them for attempting to deceive the court.
- This could include awarding a larger portion of assets to the other spouse as a penalty.
- Courts may also impose fines or even hold the offending spouse in contempt of court, which could lead to jail time in extreme cases.
2. Discovery Process & Investigations
- The divorce process includes a discovery phase, where both parties must disclose financial documents.
- Attorneys can request bank statements, tax returns, business records, and other financial documents to uncover hidden assets.
- In complex cases, forensic accountants or private investigators may be used to trace undisclosed income, offshore accounts, or undervalued properties.
3. Fraudulent Transfers Can Be Reversed
- If a spouse transfers assets to a family member, friend, or business entity to hide them, the court can undo these transactions and restore the property to the marital estate.
- The court may also impose additional penalties for fraud.
4. Impact on Alimony & Support
- If hidden income or assets are discovered, this can directly affect alimony or child support calculations.
- A spouse hiding income may end up paying higher spousal or child support payments once the deception is uncovered.
5. Attorney Fees & Costs
- If one spouse is caught hiding assets, the court may order them to pay the legal fees of the other spouse, increasing their financial burden.
How to Protect Yourself
- Hire an experienced family law attorney to ensure full financial disclosure.
- Gather financial records early to establish a clear picture of marital assets.
- Be aware of common red flags, such as sudden large withdrawals, changes in financial behavior, or hidden business interests.
If you suspect your spouse is hiding assets, legal intervention is crucial. Contact The Goodman Law Firm at (704) 502-6773 or visit our website for a consultation.
Still have questions or need advice tailored to your situation?
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