What to know about hiding assets during divorce

 Posted on October 14, 2025 in Divorce

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.

Uncovering hidden property

During divorce, both sides must share detailed financial information. If there are issues, like missing documents or income that doesn't add up, the other person can ask for more proof. Bank statements, tax returns and business records often help show the full picture. In more complicated cases, a forensic accountant might be needed to find hidden assets or check if property is being undervalued.

Why transparency is essential

Attempting to mislead the court undermines the integrity of the divorce proceedings. It can also lead to serious penalties for the dishonest party. Full disclosure not only ensures a fair outcome but also strengthens credibility. Courts value honesty and base their decisions on accurate, complete financial data.

Legal consequences you could face

Asset concealment during divorce leads to delays, increased legal costs and possible legal sanctions. Disclosing your full financial picture is the most effective way to achieve a fair and efficient resolution.