If your spouse hides assets during a California divorce, they may face serious financial penalties. Under California Family Code § 721, spouses have a legal duty to be honest and disclose their finances.
This duty generally continues until the assets and debts involved have actually been divided and distributed. Under certain circumstances, a spouse who hides assets may lose 50% or even 100% of the concealed asset’s value and be required to pay the other spouse’s attorney’s fees.
At Berenji Divorce & Family Law Group, our Los Angeles divorce lawyers help clients understand their rights and options when a spouse fails to disclose assets.
What Counts as “Hiding Assets” Under California Law?
Hiding assets means concealing property, income, or financial information that must be disclosed during divorce. It can involve more than simply keeping a secret bank account.
Common examples include:
- Leaving accounts off financial disclosures
- Transferring money to friends or relatives to hide it
- Intentionally undervaluing a home or business
- Failing to report income, investments, or bonuses
California law requires spouses to provide complete and accurate financial information. Even failing to update disclosures when required can create legal problems.
What Penalties Can a Court Impose for Hiding Assets?
Under California Family Code § 1101(g), a spouse who breaches their financial duties involving community property may be required to give the other spouse 50% of the affected asset’s value, along with attorney’s fees and court costs.
If the breach involves proven fraud, oppression, or malice, § 1101(h) requires an award equal to 100% of the affected asset’s value. This more serious remedy does not apply to every disclosure violation.
The 100% penalty is not automatic. It requires proof of more serious wrongdoing, and the outcome depends on the facts.
Can Hiding Assets Lead to Criminal Charges?
Yes. Knowingly lying about assets in divorce documents signed under penalty of perjury can potentially lead to criminal charges under California Penal Code § 118.
However, not every missing asset or incorrect disclosure is a crime. Criminal charges require proof that the person knowingly made a materially false statement.
These criminal consequences are separate from the financial penalties available in divorce proceedings.
How Do You Find Out if a Spouse Is Hiding Assets?
Hidden assets may be discovered by reviewing financial records and requesting additional information through the divorce process. A Los Angeles divorce lawyer can help determine which records may reveal missing property.
Common methods include:
- Requesting bank statements and tax returns
- Obtaining records from banks or employers through subpoenas
- Reviewing business and property records
- Hiring a forensic accountant to trace complex financial transactions
The best approach depends on the type of asset involved and the available evidence.
What Should You Do if You Suspect Your Spouse Is Hiding Assets?
If you suspect your spouse is hiding assets, gather financial documents you can legally access and speak with a divorce attorney before confronting your spouse.
Keep copies of bank statements, tax returns, property records, and other documents that may help identify missing assets. Avoid accessing private accounts without permission.
Contact the Los Angeles Divorce Lawyers at Berenji Divorce & Family Law Group for Help with Hidden Assets
Berenji Divorce & Family Law Group helps clients in Los Angeles, CA, understand their rights when financial information is missing or inaccurate.
If you believe your spouse is concealing property, contact our Los Angeles divorce lawyers at (213) 277-2586 to discuss your concerns and schedule a consultation.
Berenji Divorce & Family Law Group Beverly Hills Office
9465 Wilshire Blvd #333
Beverly Hills, CA 90212
(213) 277-2586
Berenji Divorce & Family Law Group Los Angeles Office
550 S. Hill Street STE 1467
Los Angeles, CA 90013
(213) 277-2586
