Divorce is already a difficult process. However, when one spouse is not being honest about their finances, the situation can become far more stressful. Hidden assets are one of the most common problems in contested divorces, and failing to catch them can leave you with far less than you are entitled to.
Georgia law takes financial dishonesty during divorce seriously. The state provides a number of tools designed to uncover concealed property and hold the offending spouse accountable. Knowing how these protections work puts you in a much better position to fight for a fair outcome.
Why Hidden Assets Matter in a Georgia Divorce
Georgia follows an equitable division model for splitting marital property. Under O.C.G.A. § 19-5-13, the court reviews the full picture of both spouses’ financial circumstances and divides assets in a way it considers fair. That does not always mean a 50/50 split. It means the court uses its judgment based on the facts presented to it.
If one spouse hides assets, the court is working with incomplete information. That can lead to a lopsided division that shortchanges the other spouse. It can also affect decisions about alimony and child support that rely on financial data.
The Domestic Relations Financial Affidavit
One of the first financial steps in a Georgia divorce is completing the Domestic Relations Financial Affidavit, commonly called the DRFA. Under Uniform Superior Court Rule 24.2, both spouses are required to file this sworn document in any case involving property division, alimony, or child support.
The DRFA covers a broad range of financial information:
- Gross monthly income from all sources
- A full list of assets
- Monthly expenses and financial obligations
- Outstanding debts and liabilities
As the DRFA is filed under oath, any false statements carry real legal consequences. Lying on this document is considered perjury under state law.
How Do Spouses Try to Hide Assets?
There is no shortage of tactics that dishonest spouses use to keep money and property off the books.
Some of the more common methods include:
- Transferring property or funds to a friend or family member with the understanding that it will be returned after the divorce is finalized
- Underreporting income, such as in cases where one spouse is self-employed or earns money through irregular sources
- Creating fabricated debts owed to people they know, which reduce the overall value of the marital estate on paper
- Moving money into accounts the other spouse does not know about
- Purchasing high-value items that are easy to overlook, such as collectibles
- Holding assets in cryptocurrency, which does not always show up on traditional bank statements
Cryptocurrency is treated the same as any other marital property, so it is subject to equitable division just like a bank account or a piece of real estate.
What Tools Does Georgia Law Provide for Uncovering Hidden Assets?
If you suspect your spouse is concealing property or income, Georgia’s Civil Practice Act gives your attorney several powerful tools to investigate.
These include:
- Interrogatories allow your attorney to submit written questions that the other spouse must answer under oath. Georgia caps these at 50 questions per party.
- Requests for production compel the other side to turn over financial documents such as bank statements. Unlike interrogatories, there is no limit on the number of requests
- Depositions put the other spouse under oath in a recorded setting, where your attorney can ask detailed questions and follow up on inconsistencies in real time.
- Subpoenas can be issued to banks and other third parties to obtain financial records directly.
In high-asset cases, your attorney may also recommend hiring a forensic accountant. These specialists are trained to reconstruct a full financial picture that the other spouse may have tried to obscure.
What Happens If Hidden Assets Are Found?
The consequences for hiding assets in a Georgia divorce can be severe.
If a court determines that one spouse intentionally concealed property or lied on their DRFA, several things may happen:
- The court can hold the dishonest spouse in contempt, which may result in fines and even jail time.
- The judge has broad discretion to adjust the property division in favor of the other spouse. Georgia courts regularly award a larger share of the marital estate to the honest party when fraud is proven
- If you discover hidden assets after your divorce has already been finalized, Georgia law allows you to petition the court to set aside the judgment for fraud. However, this motion must be filed within three years of the final divorce decree.
The longer hidden assets go undetected, the harder they become to trace and recover. That makes it wise to seek legal advice as soon as you can if you’re in this situation.
Contact an Atlanta Family Law Attorney at Crystal Wright Law for a Free Consultation
Uncovering hidden assets requires legal knowledge and the ability to use Georgia’s discovery process effectively. An experienced Atlanta family law attorney at Crystal Wright Law can guide you through each step and bring in the right professionals when needed.
Call us at (404) 594-2143 and set up a free consultation today to get started with your case.