Hawaii courts don’t encourage financial honesty in divorce — they demand it. Even before the case gets underway, both spouses are legally required to fully disclose all assets, debts, income and property.
However, some spouses still attempt to conceal assets they believe should remain under their control. In practice, this can include transferring funds to third parties, delaying income payments, omitting bank accounts or undervaluing business interests to reduce what is ultimately subject to division.
While such actions may seem like a way to gain a financial advantage during a stressful time, they may end up costing far more than the amount being hidden.
The discovery process has long arms
People shouldn’t assume a secret bank account, hidden transfer or informal arrangement will go unnoticed simply because it’s not easily discovered. Once divorce proceedings are underway in court, the other spouse’s attorney can use various legal tools to uncover financial information.
This may include subpoenas for bank statements, credit card records, loan applications, tax returns, payroll data and business finances. In more complex or high-net-worth cases, attorneys frequently go further and engage forensic accountants to identify inconsistencies in reporting or detect techniques used to conceal assets.
The potential consequences
Courts take dishonesty in divorce proceedings very seriously because the process depends on full and truthful financial disclosure. If a spouse hides assets, gives false information or otherwise misleads the court, the consequences can be significant.
A judge may compensate the other spouse by awarding them a larger share of the marital property, impose financial or procedural sanctions or require the offending party to pay the other side’s legal fees. In more serious cases, making false statements under oath can amount to perjury, which is a criminal offense.
Protect your assets the right way
If you have assets you’d like to protect during your divorce, the smartest thing you can do is work with an experienced legal professional. They can help you understand what you’re legitimately entitled to and build a strategy grounded in honest, accurate financial disclosure.