How Hidden Assets Can Affect a Divorce in Illinois

 Posted on January 24, 2025 in Family Law

Under Illinois's equitable distribution laws, marital assets are to be divided fairly, although not necessarily equally. If a couple is unable to divide marital assets on their own, a judge will consider many factors and make a fair division of those assets.

While it is neither legal nor ethical, one spouse often attempts to hide marital assets in an attempt to avoid splitting them with his or her spouse. If you believe your spouse is hiding assets, it is essential that you share your beliefs with your Wheaton, IL divorce lawyer.

How Are Assets Hidden By One Spouse During a Divorce?

A spouse who refuses to present a full picture of his or her finances is not only breaking the law, but financially harming the other spouse. Ideally, both spouses should always have a full picture of their marital finances so they will know when assets are being hidden.

However, one spouse often handles all the financial matters, leaving the other with little to no idea of the marital assets and making them easier to hide. Spouses try various ways to hide assets in an effort to prevent the inclusion of those assets in the division of marital assets. Here are examples of some of these tactics:

• If one spouse owns a business, he or she may pay money from the business to a close friend or family member as a way of "stashing" cash that will not be counted during the division of assets.

• Cash may be underreported for a business and "skimmed," then placed into an account the other spouse is unaware of.

• Salary checks from a spouse-owned business can be written to employees who do not exist.

• A spouse can collude with his or her employer to delay raises and bonuses until after the divorce.

• A spouse may pay family members or friends for a "debt" that does not exist; the money will be repaid after the divorce.

• The spouse who typically handles the finances and the tax returns may deliberately underreport income.

• A spouse may invest in Series EE Savings Bonds or certificate bearer bonds without the knowledge of the other spouse.

•  Investments can be made in artwork, antiques, or other property that the other spouse is unaware of.

• An account can be set up under a child’s Social Security number, so it is difficult to trace.

• One spouse can have a retirement account that the other knows nothing about.

• Gifts, rent, college tuition, etc., can be given to a spouse’s girlfriend or boyfriend.

How Are Hidden Assets Found?

If one spouse is certain the other has hidden assets but does not know where to look, it may be necessary to hire a forensic accountant who is experienced in tracking down hidden assets. Any financial transactions involving friends or family members should be closely scrutinized. All bank statements should be thoroughly looked over to determine whether there are transfers to unfamiliar accounts or other irregularities.

If there is a business, the company’s financial records must be closely examined. The tax assessor’s office can reveal property owned by one spouse. Crypto accounts are the latest way to hide assets within digital currencies. Tracking cryptocurrency transactions can be complex, to say the least. Some spouses may hire both a forensic accountant and a private investigator in addition to a divorce attorney.

Contact a DuPage County, IL Divorce Lawyer

When you choose MKFM Law, you have chosen a law firm that serves clients at their offices in Kane County, DuPage County, and DeKalb County. A Wheaton, IL asset division attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC, has the experience and knowledge necessary to find hidden assets and ensure a fair division of marital assets. Call 630-665-7300 to set up an initial attorney meeting.