Suspecting your spouse of hiding assets adds even more confusion and complexity to your divorce. Unfortunately, it’s more common than people realize, especially in high-asset divorce cases. Though Illinois requires both parties to fully disclose their financial assets, that doesn’t always mean both parties will, or if they do, do so easily.
This guide provides a helpful overview of how to uncover hidden assets and explores the legal options you have to protect your financial future.
Why Hidden Assets Matter in Illinois Divorces
Like the majority of other states in the country, Illinois follows an equitable distribution system for dividing marital property. This means assets are divided fairly, but not necessarily equally. When it comes to who gets what, several factors are weighed, including each party’s contribution to the marriage, the length of the marriage, and current financial situation. When one spouse hides assets, it unfairly reduces the other party’s share.
Common Ways Spouses Hide Assets
If you suspect your spouse of hiding assets, there are some red flags you should be on the lookout for, including:
- Transferring money to a “trusted” friend or family member
- Undervaluing a business or delaying contracts until after the divorce
- Creating fake debts or overpaying credit cards or taxes
- Purchasing expensive items like jewelry, vehicles, or collectibles and failing to disclose them
- Hiding income through cash payments or secondary accounts
If something about your spouse’s financial situation changes, don’t just chalk it up to coincidence. These activities may be a sign of your soon-to-be-ex attempting to hide assets before the formal divorce proceedings begin.
How Hidden Assets Are Found in Illinois Divorces
If you suspect your spouse of hiding assets, it will generally be uncovered during the discovery phase. This is the part of the divorce process in which both sides exchange financial records, including bank statements, tax returns, and business documents.
During discovery, Illinois divorce attorneys will typically:
- Subpoena financial institutions and employers
- Examine business books and digital transactions for inconsistencies
- Review tax filings for discrepancies or undeclared income
In complex divorce cases such as these, attorneys will also often rely on forensic accounting experts to dig deeper. A forensic accountant is trained to identify patterns of deception, such as undisclosed accounts, missing income, or inflated business expenses. They can also trace transfers made through third parties or offshore accounts. These specialists are often crucial to high-asset divorces, where sophisticated financial tactics are used to conceal money or properties.
What Happens When Hidden Assets in a Divorce Are Discovered?
If a spouse is caught hiding assets during divorce proceedings, the consequences can be significant. Illinois judges take financial honesty very seriously and have the authority to impose penalties when a party acts in bad faith. Typically, the court will:
- Award a greater portion of marital assets to the honest spouse
- Order the deceptive spouse to pay the other’s attorney fees
- Reopen the property settlement if hidden assets are found after judgment
- Impose fines or sanctions for contempt of court
- Refer the matter for criminal investigation if fraud is suspected
In addition to the financial penalties, being caught hiding assets can damage credibility in every aspect of your case. If children are involved, a judge might question a parent’s integrity when making child custody or visitation decisions.
Similar Post: Top 6 Actions to Take When Facing a High-Conflict Divorce
How to Protect Yourself if You Suspect Hidden Assets
If you believe your spouse is concealing property or income in your Illinois divorce, you should take steps early to safeguard yourself:
- Gather documentation. Make copies of tax returns, pay stubs, bank statements, and business records before filing for divorce.
- Avoid confrontation. Don’t alert your spouse to your suspicions, as this may prompt them to take further steps to conceal their activity.
- Hire a skilled Bannockburn divorce attorney. An experienced lawyer can identify irregularities, issue subpoenas, and work with financial experts.
- Ask questions. Transparency is critical in these types of cases. Request detailed financial disclosures and challenge vague or incomplete answers.
The earlier you involve an attorney, the easier it is to preserve evidence and prevent additional concealment.
The Importance of Experienced Legal Representation in Illinois Divorce Cases
Hidden asset cases often go beyond simple oversight, but rather, involve intentional deception and complex financial maneuvers. For that reason, it’s essential to work with a law firm that understands both divorce law and financial forensics.
At Katz, Goldstein & Warren, our Bannockburn family law attorneys regularly handle high-net-worth and complex divorce cases across Illinois. We know how to recognize the warning signs of concealed income, hidden investments, or undervalued businesses, and we take swift action to uncover the truth. Our team works closely with forensic accountants, valuation experts, and financial investigators to ensure that every dollar is properly accounted for before a settlement agreement is reached.
Our approach is thorough, strategic, and designed to protect what matters most: your long-term financial security.
Similar Post: Divorce Mediation or Litigation in Illinois: Finding the Right Path
Contact Katz, Goldstein & Warren for Trusted Guidance in Complex Illinois Divorces
If you suspect your spouse is attempting to conceal income, property, or other financial assets, you need a law firm that knows how to uncover the truth and protect your future. At Katz, Goldstein & Warren, our attorneys are well-versed in handling high-asset and financially complex divorce cases across Illinois. We work discreetly and strategically, using forensic accountants and financial experts to ensure that no asset goes unaccounted for and that your financial rights are preserved.
Call Katz, Goldstein & Warren today at 224-422-2694 or fill out our online contact form to schedule a confidential consultation. Our team is ready to help you navigate your divorce with clarity, precision, and confidence. We represent clients throughout Northeastern Illinois, including Cook, Lake, DuPage, McHenry, Kane, and Will Counties.
Disclaimer: This blog is intended for informational purposes only and does not establish an attorney-client relationship. It should not be considered as legal advice. For personalized legal assistance, please consult our team directly.