While the benefits of hiding assets may appear to be substantial, any potential benefit is substantially outweighed by the risk of perjuring one’s self. Some of the punishments include paying fines, paying interest, is required to surrender the hidden asset, and serving time in prison.
Fortunately, with a few simple accounting techniques, these assets will usually be uncovered during the trial. Even if not disclosed initially, the hidden assets are still fair game and a spouse can take legal measure to recover the asset after a divorce is finalized.
Colorado is considered an equitable distribution state. Equitable distributions schemes seek to accomplish just that — equitable distribution of assets and debts in a divorce. Divorce in Colorado, referred to as Dissolution of Marriage (DOM) in the court system, allows for more equity than the equal share allocated by communal property states. Furthermore, while Colorado recognizes the concept of separate property and prevents a separate property from being subject to division in a divorce, this is not always true. If a separate asset increases in value during the marriage, a spouse may be entitled to an allocation of the appreciated value.
This value method alone shows that Colorado is serious about protecting the financial well-being of both spouses, and seeking to achieve a result that is fair to both individuals.