Disclosure of assets and earnings is important in the process of divorce, especially with regard to the division of property. 

In South Carolina, it is mandatory that both the husband and wife provide full information on all the properties, earnings, and liabilities. Hiding assets in a divorce is not only unhelpful for the divorce process but also may result in criminal penalties. 

Courts frown at attempts to conceal wealth and anyone who is found guilty may be penalized through fines, suspension of a practice, and at times face criminal charges. 

Transparency is another way of ensuring that everyone gets what is due to them, and when people try to conceal items, it just prolongs the process of law.

Legal Requirements to Report Assets in South Carolina

In South Carolina, for example, it is the legal requirement of both partners to declare all properties—commingled and separate—during the South Carolina divorce process. 

This requirement makes sure that the issue of property is done in a proper manner and as required by the law. All earnings, houses, alimony, pensions, and other marital assets such as those acquired during the marriage must be revealed. 

In certain circumstances, even separate property, which is property owned before marriage or inherited, may be considered and should therefore be disclosed.

South Carolina follows the equitable distribution laws under section 20-3-10 and this means that the marital property will be divided in a fair manner but it does not necessarily mean that it will be split 50/50.

Common Methods of Hiding Assets

The following factors are taken into consideration when the court is awarding the assets: duration of marriage, both parties’ contributions, and each spouse’s ability to earn in the future. 

However, these decisions depend on the identification of all the assets in their correct values. If any of the parties fail to disclose some financial information that is pertinent to the division of properties.

There are adverse consequences such as unfair distribution of property, and legal consequences that the party involved in the deception will face.

There are several ways that the people planning to hide their assets during the divorce process may use to do so. Some common methods include:

Transferring Property

One of them is the changing of the ownership of such valuable property as real estate or vehicles to relatives or friends. 

One tries to hide the assets from the knowledge of the court with the aim of preventing him or her from enjoying the fruits of equitable distribution.

Underreporting Income

The other technique is income underreporting which is the process of declaring a lower income as compared to the actual income earned. 

This may include the following; exaggerating expenses, reducing Gross revenues, or omitting other forms of income such as bonuses or other sources of income. This strategy is used to try and lessen the amount of funds that seem to be available for division.

Undervaluing Assets

Such people may also try to understate the value of their assets. This also covers cases where one gives a wrong appraisal of the property, where he or she states that the asset is in a bad state, or where he or she under-declares items such as collectibles and shares. 

The idea is to minimize the perceived value of assets that are susceptible to division.

Hiding Bank Accounts and Investment

Others may transfer property in their ownership to their spouse or children without the knowledge of the shareholder. 

He or she may have invested in offshore accounts or other little-known ways of hiding their wealth. This is a process of coming up with fake debts or expenses.

Manipulating Business Finances

Business owners may hide assets through their companies by engaging in several deceptive practices:

Underreporting Business Income

Business owners may decide to declare low-income or high business expenses in an effort to reduce the business’s profitability.

Shifting Profits

They can shift profits to related companies or subsidiaries, which helps them hide the actual health of the business.

Adjusting Valuations

Through fudging the value of business assets or through various accounting techniques, the owners of the business can deceive people regarding the actual value of the business.

Such strategies not only distort the non-biased nature of divorce proceedings but also can produce adverse legal repercussions if exposed.

Legal Implication of Hiding Assets

Non-disclosure of assets during divorce in South Carolina has serious legal implications that one has to face. The court pays a lot of attention to these matters so as to maintain equity in the distribution of marital assets. The consequences of hiding assets include:

Contempt of Court

Any party that is accused of concealing assets will be in violation of a court order and thus be charged with contempt of court. 

This can lead to penalties such as fines, extra-legal costs, or even imprisonment in some severe cases. Contempt charges are meant to ensure that there is obedience to the law as provided by the court and also to uphold the law.

Sanctions

The court may penalize the party who concealed assets in the following manner. Such sanctions can be fines, orders for costs in the trial to be paid by the other party, or other punitive consequences. 

The use of sanctions is to punish an individual or a company for being deceitful and to discourage such actions in other similar situations.

Unequal Division of Property

Another obvious effect of concealing assets is that property is divided in a way that is not fair to both parties. If there are other undisclosed properties, this is the time that the court can realign the division of property for the benefit of an innocent spouse. 

This could mean giving the unfair advantage that the honest spouse may had over the other, by giving a higher percentage of the marital property to the former.

Adjusted Settlement

At times, the court may modify the whole structure of the divorce settlement to accommodate the concealed properties. This change can impact not only the physical assets but also the financial aspects of the marriage such as spousal maintenance, child support, and any other financial agreements that were made during the process of divorce.

Potential Criminal Charges

If one party tries to conceal property during the divorce process, he or she may face more than civil consequences that range from contempt of court, and sanctions to criminal charges. The potential criminal charges include: 

Fraud

Concealment of assets is therefore a form of financial misrepresentation which is a criminal act that is aimed at making a personal financial gain. 

Concerning, fraud in the context of divorce means any act involving an attempt to hide property or provide false information. 

This if proven can lead to criminal charges that include fines and imprisonment among other punishments. Legal repercussions of financial fraud may be serious should the deceit concern large amounts of money or otherwise affect the other person.

Perjury

Another possible criminal offense that can be brought against those who conceal assets during divorce is perjury, that is, making a false statement under oath. 

When in a case, parties are supposed to provide sworn financial statements and produce information that is false, then they are guilty of perjury. 

This is an offense that is punishable by law and may lead to charges such as fines and or imprisonment. Charges of perjury are crucial in reminding people of the need to tell the truth in a court of law.

Obstruction of Justice

In some cases, the act of concealing assets may be considered as being in contempt of the court especially where this is done in order to alter or give a wrong impression of the evidence. 

In addition to the above, obstruction of justice may attract other criminal consequences and make the situation even worse.

How to Protect Yourself Legally

Protecting yourself legally during a divorce is essential, especially when it comes to ensuring transparency in asset division. 

By taking proactive steps, such as seeking legal counsel and using financial experts, you can safeguard your rights and prevent your spouse from concealing assets.

Seek Legal Counsel

Hire a competent family law lawyer who will help in the process and make sure that all the legal procedures have been followed. Your attorney will explain to you the legal requirements for asset disclosure as you go through the process.

Use Financial Experts

Divorce lawyers should hire forensic accountants or financial specialists for proper evaluation of the assets’ division. They can assist in the establishment of the existence of other assets, and determine the worth of property as well as property division.

Gather Comprehensive Financial Records

Bring together all the necessary financial material such as bank statements, tax returns, investment records, and property valuations. 

Documentation can be useful in supporting your allegations, and ensuring that your rights are well protected.

Monitor and Document Transactions

Be vigilant of any kind of transaction in your financial accounts that seems to be out of the norm or fishy. 

Record any inconsistencies or issues that may indicate that the client is trying to conceal some of his/her assets.

Utilize Discovery Tools

Collect the necessary financial information using legal instruments like subpoenas, interrogatories, and depositions. These tools assist in making both parties disclose all the necessary and accurate financial information.

Address Hidden Assets Post-Divorce

In the event that there are other assets that were not disclosed during the divorce process, you can seek the court for a change of the division of property. This might include filing a new trial or seeking a post-divorce adjustment.

Seek an Order of Contempt or Commit Fraud

You may sue your spouse for contempt of court or fraud if there are findings that he or she hid something. This can lead to financial repercussions, changes in child custody, and division of property or other penalties.

Be Proactive and Vigilant

During the divorce stay active in managing your financial status and be cautious in monitoring your finances. It is recommended to review all disclosures on a regular basis and consult your attorney and financial advisors on your behalf.

Why You Need a Lawyer

It is therefore advisable to seek the services of a family law attorney when going through a divorce since he/she will help defend your rights, especially in relation to the distribution of properties. Here’s how our lawyer can assist you:

Legal Guidance

Our lawyer will advise you regarding the laws in South Carolina regarding the disclosure of assets and make sure that you meet all the necessary regulations. 

It can tell you about your rights within the division of property, support, and other financial issues.

Asset Discovery

One spouse is also likely to uncover information on concealed assets through discovery tools that are available to the attorney such as subpoenas, interrogatories, and depositions.

They can also involve other professionals such as forensic accountants who help in tracing other hidden assets or income.

Negotiating Settlements

Our lawyer can negotiate for you and make sure that all the assets are considered as well as all the liabilities when coming up with a settlement. They will work for a proper distribution of assets, including cases where your spouse tried to conceal the assets.

Filing Legal Motions

If you have reason to believe your spouse is concealing assets, your lawyer can file motions for disclosure, motions for sanctions, or petition the court for an adjustment of property distribution. 

They can also seek legal redress in case the other spouse conceals assets after the divorce has been granted.

Representation in Court

In a trial, a lawyer speaks for the client and presents the facts of the case in the best way that will favor the client. 

They can help you in making sure that you get your fair share of the marital assets especially where the marriage has come to an end.

Protecting Your Future

Apart from the basic divorce, your lawyer protects your financial interests in the future by making sure that all properties are enumerated on the table. 

They aim to avoid future problems, for instance, the husband or wife conceals assets after the divorce or ends up with unfavorable financial terms.

If you suspect your spouse is hiding assets during your divorce, please call Max Hyde Law Firm at (864) 804-6330 for a free consultation. We are here to help you navigate this challenging situation with confidence and ensure that your rights are protected throughout the process.