The divorce process can challenge a separated couple emotionally and financially. One spouse may think about the possibility of divorce long before filing the official paperwork.
While planning for certain aspects of your future post-divorce, secretly setting aside money in anticipation of the divorce can lead to legal and financial consequences.
Concealing assets
Concealing assets is an illegal act in most states, including Minnesota. You must disclose all your financial information before dividing property in your divorce. If a spouse hides money or other assets, the court may take this into consideration when determining property division and even impose sanctions on that person.
Even if you acquired the assets before marriage, it is still concealment if you do not disclose them during the divorce.
Consequences of concealment
Concealing assets and debts can lead to severe consequences in your divorce case. It can lead to a less favorable outcome in the division of property. For example, the court may award a larger share of the marital assets to the non-concealing spouse. Plus, this behavior might constitute fraud and could result in legal repercussions. It can also damage your credibility in court, which can affect your case.
Alternatives to stashing money
Staying transparent and communicating clearly during your divorce about your financial situation can help you avoid misunderstandings and potential legal issues. Instead of secretly stashing money before or during your divorce, you can follow other ways to protect your financial interests. Seeking outside professional advice can help you understand your rights. Additionally, a financial advisor or planner can help you understand your financial future post-divorce.
Secretly setting aside money in anticipation of divorce can have severe legal and financial implications.
