Yes, you can be penalized for the incomplete disclosure of assets during a divorce case in California. If you are found guilty of attempting to hide assets, you could face a criminal charge known as perjury (California Penal Code Section 118), which claims that you knowingly made a false representation of fact after taking an oath to tell the truth. This could result in a felony charge in California, depending on the circumstances, with penalties such as a fine and jail time.
In addition, California Family Code 1101 allows for the recovery of financial compensation from a spouse who is caught hiding assets in a divorce case. This means you could be held civilly liable for failing to disclose an asset. Your ex-spouse could file a claim against you for a breach of fiduciary duty, potentially resulting in a court order requiring you to pay your ex a certain amount of money as a penalty. The typical remedy is 50 percent of the undisclosed asset, plus attorney’s fees and court costs.