If you are considering a divorce, you may wonder if the other party might be hiding some 
things. If they do, what will happen to them?
At the beginning of a divorce, each party is asked to fill out a financial affidavit. This formal document is typically required in divorce litigation, because it provides the official information about the finances of each spouse, allowing the court to fairly divide assets, award alimony, and make other important decisions. In some cases, individuals lie about their finances, omitting important information or misrepresenting their financial status. Lying on formal court documents is never a good idea, especially where money is involved.
Penalties for failing to disclose financial information
Being dishonest about your finances in court can lead to serious penalties, including criminal charges and even jail time. However, the truth of the matter is, the severity of your punishment depends on the conditions of the lie and how lenient your judge chooses to be. Intentionally lying on your divorce papers about your finances is fundamentally the same as lying to the court, which is against the law. Still, financial matters can be complex, and if you accidentally miscalculate or omit information, the court may prove more lenient and choose to dole out a simple slap on the wrist, so to speak.
In a divorce, it is required that both parties provide full disclosure, informing the court of all income, expenses, assets, and liabilities. If one spouse lies about anything associated with their finances, it could significantly affect the way the assets are divided, or how much alimony or child support is paid. In short, lying about your finances could lead to undercutting your soon-to-be ex-spouse, which the court will not look kindly on. Even if your mistake was an innocent one, you may still face penalties.
The repercussions for lying about your finances could be as simple as a stern talking-to from the judge. A judge may take it upon him or herself to openly reprimand you for presenting misinformation. It is also possible the court will decide to provide more for your spouse, either in the asset division or in alimony. If the court had decided to split your assets in half, but it became clear you were hiding $10,000, the court may decide to award the hidden funds entirely to your spouse. Or, the judge may reconsider the split at 60/40, in your spouse’s favor.
In the worst-case-scenario, the judge may find you guilty of perjury. Lying to the court is illegal, and can be considered a criminal act punishable by costly fees, and even jail time. Typically, the court will only treat the crime as perjury when a large amount of money was hidden.
These types of cases are far from black and white. The outcome depends greatly on the judge presiding over your case, and the way in which your financial mistake happened and was presented. The simple truth is, it is always better to be honest with your divorce attorney and to the court, and lying on official documents is illegal and should never be practiced or encouraged.
Steven W. Hair, focuses his practice as a divorce attorney, family law attorney in Clearwater, Palm Harbor, and Safety Harbor.
For more information, visit our website at www.FamilyLawClearwater.com
or call (727) 726-0797.