When you and your spouse decide to file for divorce, you’ll find that the financial aspects of this process are often the most contentious. As such, the courts order full transparency regarding each party’s financial situation, requiring full disclosure. If you’re unsure what information you must provide, why this information is necessary, and what happens if a spouse is caught hiding assets, you’ll want to keep reading. In addition, you’ll learn why working with Morris County property division lawyers is in your best interest during these complex matters.
What Is Financial Disclosure?
When you go through a divorce, the courts require full financial disclosure. This means that you must provide details regarding all assets, income, liabilities, and expenses in your name.
During a New Jersey divorce, you’ll need to complete a Case Information Statement. This is a comprehensive document that must be completed as accurately as possible. Additionally, you’ll need to provide supplemental documentation, like tax returns, W-2s, and paystubs.
Why Is It Important?
Financial disclosure in a New Jersey divorce is critical, as there are a number of matters that will be decided based on the information provided to the court. For example, these documents can help the court determine whether or not a spouse should be awarded alimony or how much child support should be paid to the custodial parent.
Additionally, this document will help the court determine the best way to divide the marital assets owned by the couple. Marital assets are generally any asset obtained by either spouse over the course of the marriage, regardless of who technically owns it. New Jersey adheres to an equitable distribution statute, meaning the assets jointly owned by a couple are not automatically divided evenly, but rather fairly.
What Happens if One Spouse Hides Assets During This Process?
Unfortunately, a spouse may make the decision to conceal assets in order to retain control over them in the hopes of receiving a better outcome when the assets are divided by the court. Common ways in which a spouse may attempt to hide assets include transferring property to friends and family until the divorce is over, underreporting their income, or utilizing hidden and secret bank accounts.
In the event a spouse does attempt to conceal assets, it can result in legal trouble. A spouse may be held in contempt of court or charged with perjury for intentionally lying to the court. Additionally, they may be required to relinquish ownership of the assets they were attempting to conceal to their spouse. The court may also grant their spouse a greater share of the assets as punishment for attempting to commit fraud.
Navigating financial disclosure can be a difficult and overwhelming process, especially if you have reason to believe your spouse is attempting to hide assets. As such, working with an experienced attorney with Leslie Law is in your best interest. Our team understands how difficult these matters can be to navigate, which is why we will work to help you through these complicated times. Connect with us today to learn how we can fight for you.
