A couple with two children filed for divorce back in 1999. As more time went by, the battle between the two grew even more intense. Although dividing assets is an essential part of a divorce, it is not always cut and dry. Recently, a man was found to have hidden a substantial amount in assets. Alabama spouses may be able to learn from this couple’s experience.
The man worked in real estate and as an investor for an electrical company. He threatened to file bankruptcy so that his wife could not get anything, even child support. Eventually, the man filed for bankruptcy, but he did not disclose all of his assets. He reportedly put his assets in other individuals’ names in an attempt to cover up millions. To avoid increasing the amount paid in child support, he disguised incoming income through shell companies.
After his bankruptcy wrongdoings were discovered, the man was sentenced to over 17 years in prison. He also must pay a $500,000 fine and relinquish his $2.8 million in assets. The judge stated that he repeatedly deceived the bankruptcy court in his money laundering scheme. This is one of the longest prison sentences for bankruptcy fraud.
Each spouse must disclose all of his or her assets during the divorce process, especially when dealing with child support and property division. Failure to do so may result in jail time, and more importantly, it may deprive the children of needed necessities. Alabama spouses may benefit their case and their financial futures by keeping up to date with relevant laws and having the right legal support by their sides.
Source: The Sacramento Bee, Gold River man who hid assets in divorce, bankruptcy gets 17-year sentence, Denny Walsh Entertainment Events Movies, March. 4, 2014