Five Warning Signs of Hidden Assets During Divorce

 Posted on April 11, 2023 in Divorce

Finances play a crucial role in any divorce case. Because of this, Illinois law requires divorcing spouses to provide detailed information about their income and property during the divorce. The information spouses provide on their financial affidavits will be used to address everything from property division to child support. Whether you are engaged in an uncontested divorce or contested divorce, truthful financial disclosure is required from both parties in order for the divorce outcome to be fair and reasonable.

It is important for divorcing spouses to be aware of warning signs that could indicate that the other spouse is hiding assets, failing to disclose all income, or otherwise lying about finances.

Refusing to Discuss Financial Matters

One red flag that could indicate financial deception during divorce is a refusal to discuss financial matters. If your spouse shuts down or becomes irate upon the mere mention of gathering copies of tax returns or discussing the division of marital assets, this could be a sign that he or she is trying to hide something. Ideally, divorcing spouses would be cooperative and provide the information needed to resolve the divorce without court intervention. However, if a spouse refuses to provide the necessary information, subpoenas or other discovery tools may be needed to gather the information.

Hiding Financial Documents or Online Financial Accounts

Has your spouse changed the passwords to your online banking app or retirement accounts? Did he or she take your old tax documents and credit card bills out from their usual location? Sometimes, divorcing spouses attempt to hide financial documents from the other spouse to manipulate the outcome of the divorce.

Frequent Cash Withdrawals

Another warning sign that a divorcing spouse is up to something nefarious is frequent cash withdrawals. Spouses may withdraw cash from a joint checking account and stow it away in order to avoid splitting that money with the other spouse. Cash withdrawals can sometimes be hard to detect because spouses get cash back at places like grocery stores or gas stations where it is less noticeable on a bank statement.

Giving Gifts or Paying Back Personal Loans You Did Not Know About

Divorcing spouses sometimes transfer funds to friends and family in order to shield the funds from division during divorce. After the divorce is over, the friend or family member returns the money to the spouse - robbing the other spouse of his or her share of the funds. If your spouse is suddenly repaying personal loans that you did not know about or giving away money or property to other people, this is a sign that something is not right.

Sudden Business Downturn

Spouses who own their own businesses often have ample opportunities for hiding assets during a divorce. A business may represent a significant portion of an individual's wealth, so undervaluing the business can be an effective means of hiding money during divorce. If your spouse’s thriving business has suddenly become profitless, it is possible that your spouse is lying about the business’ success in order to sway the divorce outcome in his or her favor.

Contact Our Joliet Divorce Lawyers

Whether your divorce is resolved through a negotiated settlement or the courts, the outcome should be based on factual, accurate financial information. If you suspect that your spouse is hiding assets, undervaluing property, or failing to disclose any sources of income, call us for help. At Reeder & Brown, P.C., our Plainfield divorce attorneys are experienced in uncovering financial deception and advocating fiercely on our clients’ behalf. Call us at 815-885-5980 for a free initial consultation.

Source:

https://www.forbes.com/sites/catherineschnaubelt/2019/03/08/finding-hidden-assets-in-a-divorce/