Signs Your Spouse May Be Hiding Assets During Divorce
In a high asset divorce, one spouse may control the finances. This control can make it easier for the spouse to hide income or property. Recognizing red flags early can help protect your interests.
Unexplained Changes in Financial Behavior
Your spouse might suddenly become secretive about accounts, stop sharing statements, or move money between accounts you do not recognize. Your spouse may also claim sudden financial hardship or large business losses that do not match their lifestyle.
Missing Documents or Altered Records
If your spouse “loses” tax returns, paycheck stubs, or business invoices, he or she might be trying to hide his or her actual income. Similarly, overpaying taxes or debts can create a paper trail for refunds or credits that the spouse may plan to claim after the divorce. Illinois has an average consumer debt load of $74,110 per capita, with student loan, auto, and credit card debt accounting for much of it.
Hiding in Plain Sight
A spouse might buy expensive items, such as art, jewelry, collectibles, or vehicles, and undervalue them when listing marital property. Business owners may delay signing new contracts, postpone bonuses, or pay phantom employees to reduce reported income.
Other warning signs that you might be divorcing a spouse who hides assets include:
- Large or unexplained withdrawals from joint accounts
- Sudden “loans” to family or friends
- Secret safe deposit boxes or crypto wallets
- Unexplained cash transactions or overseas wire transfers
The earlier you notice red flags, the easier it is to document them. Keep copies of all financial statements, bank records, and tax returns. Doing this can make a difference in tracking hidden assets.
When a Spouse Hides Assets Believing They Are Separate Property
Sometimes, a spouse conceals assets because he or she believes certain items are separate property. In Illinois, the law distinguishes between marital property, which is subject to division, and non-marital property, which belongs only to one spouse.
A spouse who hides such an asset risks serious legal penalties if the court determines that it was, in fact, marital. Illinois courts expect full disclosure of both marital and non-marital property to ensure a fair distribution. Hiding assets, even under the belief that they are “separate,” can lead to penalties.
Legal Steps to Take When Assets Are Concealed
Illinois law requires both spouses to file a detailed financial affidavit disclosing all income, property, debts, and expenses. When one party lies or omits information, it violates the principle of equitable distribution. Serious legal penalties can result.
Conducting Formal Discovery
If you suspect your spouse is concealing property, formal discovery is a legal process that compels both parties to exchange financial information. Through discovery, your attorney may issue interrogatories, requests for production, and depositions.
Doing Forensic Tracing
For more complex financial cases, your Illinois divorce attorney may work with a forensic accountant. These specialists trace funds through bank accounts, investments, and business records to identify discrepancies or undeclared assets. They can uncover shell companies, off-the-books income, or cryptocurrency holdings that might otherwise go undetected.
Freezing Accounts, Preserving Records, and Issuing Subpoenas
When there is reason to believe that a spouse is destroying or tampering with evidence, your attorney can ask the court for emergency orders to freeze accounts or preserve financial records. Illinois courts can also issue subpoenas to banks, employers, or financial institutions to obtain third-party documents verifying income and holdings.
Reopening the Divorce Case
If hidden assets come to light after the issuance of the divorce decree, Illinois law allows you to reopen the case. In other words, recovering concealed assets remains possible even after the divorce is finalized. Judges take concealment seriously, especially if a spouse tries to manipulate the timeline of a contested divorce to avoid disclosure.
How an Illinois Divorce Lawyer Can Help Recover Hidden Property
Your Illinois divorce attorney can follow several divorce strategies, for example, conducting detailed financial discovery to expose inconsistencies and working with forensic experts to trace assets and evaluate business interests. Attorneys also can file motions to compel disclosure or hold your spouse in contempt, present evidence of concealment to the judge during hearings, and seek compensation or sanctions for fraudulent conduct.
If your spouse’s deception affected child or spousal support, your attorney can request modifications for you to get alimony or increase payments based on the true financial picture. A lawyer helps you stay proactive rather than reactive.
Even after final judgment, your attorney can file post-decree motions if new evidence emerges. Illinois courts can impose severe penalties, including fines, attorney’s fees, and the hidden assets, for willfully concealing assets.
Divorcing a spouse who hides assets requires careful planning. Silberman Law Group can help in the Northbrook, IL, area. Contact us today.
FAQs About Divorcing a Spouse Who Hides Assets
What are common tactics spouses use to hide assets in a divorce?
Spouses may transfer money to friends or relatives, create fake debts, underreport income, or move funds into secret accounts or cryptocurrency.
How can I prove my spouse is hiding money or property?
You can prove concealment through bank records, tax returns, discovery requests, and expert forensic accounting that traces financial inconsistencies.
Can a court impose penalties if a spouse conceals assets during divorce?
Illinois courts can fine, sanction, or hold a spouse in contempt, and may award the entire hidden asset to the other spouse.
