Asset Concealment in Divorce under Turkish Law

Turkish Civil Code Article 193 grants spouses the freedom to engage in legal transactions within the family regime. However, this freedom is not unlimited. The legislator has introduced certain restrictions to preserve the economic integrity of the family and ensure the fulfillment of the financial obligations arising from the marriage union. One such limitation concerns the disposition of acquired assets during divorce proceedings.

In particular, dispositions made on acquired assets during divorce are among the most common situations that raise suspicion of asset concealment from the spouse.

In this article, we will discuss the issue of asset concealment in divorce; we will examine what can be done in such cases and how you can protect your rights.

What is Asset Concealment in Divorce?

Asset concealment in divorce refers to the act of one spouse attempting to prevent an equitable distribution of assets by hiding assets from the other spouse and the court during the divorce process. This behavior typically involves reducing the value of assets, not collecting receivables, incurring high debts before the trial, making false statements, or transferring assets to third parties.

Transfer of Assets: One spouse may transfer acquired assets, such as a house or car, to third parties before or during the divorce proceedings. These transfers, if made gratuitously or for a low price, may be considered asset concealment.

Incurring Debts: One spouse may incur significant debts before or during the divorce proceedings. If these debts are not for a genuine need or are not expected to be repaid, they may be considered asset concealment.

Collection of Receivables: One spouse may delay or avoid collecting receivables before or during the divorce proceedings. If this is done to reduce the other spouse’s share of acquired assets, it may be considered asset concealment.

What are the criminal consequences of asset concealment from a spouse? To find the answer to this question, one needs to look at the Turkish Penal Code.

What are the Criminal Penalties for Asset Concealment from a Spouse?

The Turkish Penal Code (TPC) does not contain a specific offense called “asset concealment from a spouse.” Acts of asset concealment from a spouse are typically identified during asset division in divorce proceedings and can result in the following penalties:

Civil Penalties:

Annulment of Transactions: According to Supreme Court rulings, if asset concealment from a spouse is detected, transactions made (e.g., property sales, deed transfers, etc.) can be annulled.
Compensation Provisions: The spouse who has suffered due to asset concealment may claim material and moral compensation for unjust acts.

Criminal Penalties:

According to the Turkish Penal Code, acts of asset concealment can involve elements of fraud or theft, and in such cases, a criminal investigation may be initiated.

Other Penalties:

Civil Remedies: In cases where one spouse makes transactions without the other’s consent, the court may disregard these transactions during the liquidation of the marital property regime and ensure a fair division.

What are the Methods for Proving Asset Concealment in Divorce?

Proving asset concealment in divorce is a critical step to ensure an equitable division of assets. If you suspect your spouse is hiding assets, you can start by examining bank account movements to identify extraordinary money transfers or large cash withdrawals.

Additionally, land registry records can reveal transactions involving your spouse’s properties, and any unauthorized sales or mortgages may indicate asset concealment.

Moreover, receipts and invoices for large purchases, especially for luxury items, can increase suspicion of asset concealment.

Other evidence, such as witness statements and expert reports, can be important to support asset concealment claims in court. Your spouse’s social media posts showing signs of a luxurious lifestyle can provide clues about hidden assets.

Finally, legally reviewing your spouse’s electronic communications can provide information on plans for asset concealment. These methods can help protect your rights and achieve a fair outcome in the divorce process.

Method	Description
Bank Account Movements	Extraordinary money transfers or large cash withdrawals in the accounts of one spouse during the divorce process may indicate asset concealment activities.
Land Registry Records	Land registry records showing transactions on your spouse’s properties can strengthen suspicions of asset concealment if there are unauthorized sales or mortgages.
Invoices for Luxury Purchases	Receipts and invoices for high-value luxury purchases during the divorce process can increase the likelihood of asset concealment.
Witness Statements	Witness statements can provide crucial information about one spouse’s attempts to conceal assets. These statements can also be used to support asset concealment claims in court.

The Status of Assets Sold 1 Year Before Divorce: Provisions of the TCC and Supreme Court Decisions

If one spouse sells common or personal assets during the period close to the start of the divorce process, this can have legal consequences.

TCC and Asset Sales During the Divorce Process

Within the framework of the property regime of participation in acquired property regulated by Article 202 of the Turkish Civil Code (TCC), the examination of asset sales made before the divorce becomes relevant. Article 229 of the TCC states that gratuitous transfers and transfers made to reduce the receivables of the other spouse within one year before the divorce will be considered upon the termination of the property regime.

Supreme Court Decisions on Asset Sales Before Divorce

Supreme Court decisions generally regard asset sales made one year before the divorce as fraudulent (deceptive). These sales are often made without the other spouse’s consent and to reduce the other spouse’s share of the property. If the court determines that the sale was fraudulent, the transactions can be annulled, and the assets returned to the previous owner. This is a common occurrence in divorce cases and an important step in protecting the rights of the aggrieved spouse.

What is the Annulment of Disposition Due to Asset Concealment from a Spouse?

The annulment of disposition due to asset concealment from a spouse is regulated in the Turkish Civil Code to prevent unjust enrichment and ensure justice in asset division among spouses. According to Article 229 of the TCC, such dispositions, which are considered fraudulent, can be annulled if an annulment lawsuit is filed.

A fraudulent transaction refers to transactions that serve a different purpose while appearing as a different transaction legally. In asset concealment dispositions, the spouse’s main aim is to reduce the other spouse’s assets and gain an unfair advantage in the divorce case.

For the annulment of the disposition of asset concealment from a spouse to be possible:

One spouse must have foreseen the possibility of divorce, and
The transaction must have been made with the intent to reduce the other spouse’s assets.

If these conditions are proven, the court can annul the disposition of asset concealment, ensuring that the asset is included in the asset division during the divorce case.

An annulment lawsuit for the disposition of asset concealment from a spouse:

Can be filed during the divorce case or after the divorce.
The right to file the lawsuit belongs to the aggrieved spouse.
The lawsuit can be filed against the spouse to whom the annulment request is directed and the third party with whom the transaction was made.

Evidence that can be presented when filing the lawsuit:

Divorce case documents and other documents related to the divorce
Documents related to the assets, such as land registry records, bank statements, etc.
Witness statements

How to Prevent Asset Concealment in Divorce?

You can prevent asset concealment by making a prenuptial agreement before the divorce and carefully monitoring joint assets. Once the divorce process begins, you can request precautionary measures from the court, place an annotation on the family home, and file an asset division lawsuit to limit your spouse’s control over the assets. Additionally, gathering evidence of your spouse’s attempts at asset concealment can strengthen your legal position.

1. Before Filing for Divorce:

Make a Prenuptial Agreement: A prenuptial agreement allows you to pre-determine who will own the assets acquired during the marriage and how they will be divided in the event of a divorce. This clarifies the legal framework of the property regime and reduces the likelihood of asset concealment.

Pay Attention to Joint Assets: Monitor assets owned jointly, such as real estate, vehicles, and bank accounts. If you notice unusual activity in these assets, it is advisable to consult a lawyer.

Share Financial Information: Share financial information, such as joint credit cards, bank accounts, and investments, with your spouse. This can prevent your spouse from unilaterally making transactions on these assets.

Place an Annotation on the Family Home: An annotation on the family home, under Article 159 of the Land Registry Law, is a note placed on the property used in the marriage union. This annotation prevents one spouse from selling or mortgaging the family home without the consent of the other.

2. After Filing for Divorce:

Request Precautionary Measures: After filing for divorce, you can request the court to take precautionary measures on the assets. This can prevent your spouse from selling or transferring the assets until the case is concluded.

File an Asset Division Lawsuit: An asset division lawsuit can be filed at any time during the divorce process. This allows for precautionary measures to be requested on the assets, preventing asset concealment.

Gather Evidence: Collecting evidence of your spouse’s attempts at asset concealment is crucial. This evidence can include bank statements, land registry records, emails, and witness statements.

Frequently Asked Questions

What is the Penalty for Asset Concealment from a Spouse?

The penalty for asset concealment from a spouse is the legal sanctions applied when one spouse secretly reduces or destroys the other spouse’s assets without consent. According to the Turkish Civil Code, such behaviors are considered during the liquidation of the property regime, and necessary corrections are made.

How to Prevent Asset Concealment in Divorce?

To prevent asset concealment in divorce, you can request precautionary measures from the court. These measures are aimed at preventing the sale of assets and can be valid until the divorce case is concluded.

How Long is Asset Concealment Considered in Divorce?

In divorce cases, asset concealment is considered if it occurs within one year before the termination of the property regime. According to the Turkish Civil Code, transactions made during this period are considered during the liquidation process and corrected if necessary.

What is the Penalty for Asset Concealment?

The penalty for asset concealment involves legal consequences for actions that violate the principle of honesty between spouses and obstruct the fair liquidation of the property regime. These penalties can include the annulment of transactions or compensation obligations.

What Situations Constitute Asset Concealment?

Asset concealment generally involves gratuitous transfers or transactions made without the consent of the other spouse. Transactions made with the intention of reducing the other spouse’s participation claim, in particular, fall under the scope of asset concealment.

Is It a Crime for a Spouse to Conceal Household Items?

The Turkish Civil Code (TCC) contains a provision limiting the power of disposition to prevent spouses from disposing of certain assets during the marriage. This provision, regulated under TCC Article 199/f.1, is intended to use a measure mechanism specific to family law.

How Long Does an Asset Concealment Case Take?

The duration of an asset concealment case varies depending on the complexity of the case and the workload of local courts. Generally, the trial process for such cases can range from a few months to several years. This duration depends on the collection of evidence, witness statements, and the court’s evaluation.

How to Place a Precaution on a Car During Marriage?

Legal Application:

Request for Precautionary Measures: When a divorce case is filed, you can request precautionary measures from the court to prevent damage to important assets, such as a car. This request can temporarily stop the sale, transfer, or pledge of the vehicle until the case is concluded.

Court Decision:

To grant a precautionary measure, the court must determine that the request is reasonable and necessary. This generally means that the requesting spouse must provide concrete evidence of the risk of misuse or unjust disposal of the vehicle.

Implementation:

Once the court grants the precautionary measure, the decision is communicated to the Traffic Registry Office or other relevant official institutions where the vehicle is registered. This prevents any transactions on the vehicle from being conducted officially.

Vehicle Status:

After the precautionary measure is granted, any transaction on the vehicle requires court approval. During this process, the vehicle cannot be sold, transferred, or pledged.

Removal of the Precaution:

When the divorce case concludes, the court will decide whether the precautionary measure should continue based on the final judgment. Depending on the outcome of the case, the precaution can be permanently lifted, or new arrangements can be made within the framework of asset division.

Is It a Criminal Offense for a Spouse to Conceal Household Items?

The Turkish Penal Code (TPC) does not specifically define “asset concealment from a spouse” as a separate offense. Therefore, concealing household items alone does not constitute a criminal offense.

However, depending on the method used and the outcomes of the action, different offenses may be involved. These offenses may include:

Theft: If a spouse takes household items without the other spouse’s consent and without causing damage to the property, this can be considered theft. (TPC Article 141)
Robbery: If a spouse takes household items using force or threats against the other spouse, this can be considered robbery. (TPC Article 288)
Damage to Property: If a spouse damages property while taking household items, this can be considered damage to property. (TPC Article 185)
Fraud: If a spouse takes household items by deceiving or making false statements to the other spouse, this can be considered fraud. (TPC Article 157)

What is the Limitation of Spousal Disposition Authority

Who Owns the Property Acquired Before Marriage?

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