Divorcing couples in North Carolina may not always part on the best of terms. Divorce is fraught with emotion. It often results in one or both parties fighting or feeling negative about the other. This can lead to someone making rash decisions.

Because of this, it is important to understand that all decisions have consequences. Let us look at the rash decision to try hiding assets. You may not know it, but this decision carries heavy penalties.

What is a financial affidavit?

When you start the divorce process, you and your spouse both sign a financial affidavit. By signing this document, you are saying that what you report is true to the best of your understanding. This puts you under legal obligation to report your finances in detail. If you attempt to hide assets, this is an act in contempt of the court.

What is an act of perjury?

This is, in fact, an act of perjury. This may result in fines, fees or even time in jail. Each state handles perjury in a different way. It is also up to the judge presiding over your case to decide how to handle the hidden assets. They may choose to award your ex-spouse a bigger portion of money. They may order you to pay for their legal fees. In any case, people caught trying to hide assets end up losing more money than they would have saved.

Do you want to continue reading about property division during divorce? Would you like to know more about the division of assets? If so, take a look at our linked web page. You can read more about it there.