The Consequences of Hiding a Bank Account During a Kentucky Divorce
When going through a divorce, it is essential to be transparent about your financial situation. Unfortunately, some individuals may attempt to conceal assets, including bank accounts, in an effort to protect their finances. However, hiding assets during a Kentucky divorce can have severe consequences.
Worried about your spouse fudging the numbers or otherwise trying to cheat you out of what you deserve during your Louisville divorce? Don’t wait a moment longer—call John H. Ruby & Associates at 502-895-2626 to set up a consultation.
Kentucky’s Approach to Asset Division
In Kentucky, as is the case in many states, the division of assets follows the principle of equitable distribution. This ensures that marital property is split up in a manner that is deemed fair by the court, though not necessarily on an equal basis. Full financial disclosure is required to find a fair division of assets. This includes the complete disclosure of all bank accounts, investments, real estate, cryptocurrency, and any other financial resources acquired during the marriage.
It is the responsibility of each spouse to ensure that all assets are disclosed; failure to do so both undermines the legal process and can cause issues during the divorce.
How Hidden Bank Accounts and Assets Are Found
Uncovering hidden assets, including bank accounts, in a divorce requires diligence and expertise. However, it’s much less challenging than uncovering other types of hidden assets. In many cases, hidden bank accounts are linked directly to an owner’s SSN or business name, which means that tracking them down is just a matter of asking the right people. Additionally, wronged spouses can often sense when something is going on—their soon-to-be-ex claims to be broke, but has the funds to live a lavish lifestyle during the divorce process. In these situations, a forensic accountant can often find and prove the existence of hidden assets.
How the Court Reacts to Hidden Assets
Upon discovering that a spouse has concealed assets during a Kentucky divorce, the response from the court is swift and harsh. Judges view these efforts as both insulting to the other party and to the court itself. Judges have the discretion to take action against the party attempting to hide assets. They may impose fines, hold them in contempt, or even sentence them to jail time—although this last outcome is rare.
The message from the court is clear: attempts to undermine the divorce process by hiding assets will be dealt with in a way that protects both the other spouse and the integrity of the court.
Short-Term and Long-Term Consequences of Hidden Assets
The immediate aftermath of concealing assets during a divorce in Kentucky can unfold in different ways. Initially, the individual may face a variety of legal repercussions that not only escalate the complexity of the divorce proceedings but also increase the financial burden due to potential penalties and the requirement to cover additional legal fees.
Long-term, this choice could affect the rest of your divorce proceedings. The judge is unlikely to view the spouse who attempted to hide assets in a favorable light, which is something they will have to deal with throughout the entire case. These issues can even extend to spousal support and child custody decisions.
Hiding Assets Could Affect Your Coparenting Relationship
One often overlooked aspect of hiding assets during a Kentucky divorce is the impact it can have on your relationship with your co-parent. Beyond the immediate legal ramifications, choosing to hide assets can put both parties in a very bad place to start a strong co-parenting relationship. Effective coparenting requires some level of mutual trust, but how can one parent trust the other when they just attempted to steal thousands of dollars from them? The party at fault is likely to face a certain level of suspicion for years to come, which will make it far more challenging to co-parent in a peaceful and friendly manner.
Wondering How You Can Protect Yourself During Divorce? Let’s Talk
The team at John H. Ruby & Associates is committed to helping you navigate this difficult time and advocate for yourself as you prepare for the next stage of life. Schedule a consultation now by calling us at 502-895-2626 or filling out our online contact form.