Divorce is a difficult undertaking regardless of the circumstances that lead to the end of your marriage. If the divorce is contested, one party may resort to unorthodox tactics like hiding marital assets.
Idaho is a community property state. As such, the divorce court is required to approve the distribution of the marital assets in accordance with state laws. However, this may not be possible if one party is hiding marital assets.
But what does it mean to hide marital assets during the divorce?
As part of the Idaho divorce process, the divorcing couple is required to provide a full list of their assets and debts to the court – both marital and separate property – for a fair asset division. Under the state’s marital law, any asset that is acquired during the course of the marriage and before separation is considered a marital asset. Only marital assets can be put up for division during the divorce process. Any asset that is acquired before the onset of the marriage or that is received as inheritance is considered separate property and, as such, cannot be subject to division.
Common ways couples hide marital assets
Couples employ a number of tactics to hide marital assets. The exact method depends on the assets in question. That said, here are some of the methods couples use to hide marital assets:
- By gifting family and friends
- Through lavish expenditures
- Through undisclosed investments and bank accounts
- By undervaluing assets
The problem with hiding marital assets
The problem with hiding assets is that it denies the court the correct picture of what the divorcing couple owns. This, in return, adversely impacts the court’s judgment regarding the subjects of child support and alimony. Additionally, it compromises the court’s ability to distribute the assets in a fair manner.
Hiding marital assets can certainly mar the outcome of property division during divorce. Find out how you can protect rights and interests if your spouse is engaging in this practice.