How Hidden Assets Are Tracked Down In Illinois Divorce Cases
As a divorce attorney in Schaumburg, one of the most common and troubling issues I see during the divorce process is the concealment of assets. Divorce can bring out the worst in people, especially when money is involved. When trust breaks down, one spouse may try to hide income, investments, or property to avoid dividing them fairly. If you suspect that your spouse isn’t being truthful about their finances, I want you to know that you’re not powerless. Under Illinois divorce law, both parties have a legal obligation to fully disclose their assets and debts. And if one party tries to hide assets, there are ways we can uncover the truth and hold them accountable.
Hidden assets can appear in many forms – offshore accounts, undervalued business interests, fake debts to friends or relatives, or unreported income. These tactics can impact your share of the marital estate, your ability to seek spousal support, and the overall fairness of your divorce. The good news is that Illinois law gives us the tools to investigate financial misconduct, and I’ve helped clients throughout Schaumburg and the Chicago area track down hidden money that was rightfully theirs.
Illinois Law Requires Full Financial Disclosure
Illinois courts take asset disclosure very seriously. Under 750 ILCS 5/501(a)(1) of the Illinois Marriage and Dissolution of Marriage Act, each party is required to provide a sworn financial affidavit disclosing income, expenses, property, and debts. This affidavit is not just a formality; it’s a legal document submitted under oath.
If one spouse lies or omits important information on the affidavit, they can face sanctions, including being required to pay the other spouse’s legal fees or even having the entire property division reconsidered. Courts have the discretion under 750 ILCS 5/503(d) to redistribute marital property if fraud or concealment is later discovered.
Common Ways Spouses Try To Hide Assets
In my practice, I’ve encountered many creative attempts to conceal money. Some of the most common tactics include:
- Transferring money to a family member or friend temporarily;
- Making fake payments to phony vendors from a small business;
- Purchasing valuable items like artwork or collectibles and underreporting their value;
- Stashing cash in a safe deposit box or offshore account;
- Delaying commissions or bonuses until after the divorce is finalized;
- Overpaying taxes in order to receive a refund later.
No matter how it’s done, hiding assets is illegal, and the court takes it seriously once exposed.
How I Track Down Hidden Assets
When I represent clients in divorce proceedings, I use a combination of legal tools and strategic discovery techniques to uncover concealed assets. Here are some of the methods I commonly use:
- Discovery Requests – Through interrogatories, requests for production of documents, and subpoenas, I can force the other side to turn over tax returns, bank statements, credit card bills, business records, and more.
- Depositions – During a deposition, I question the other party under oath, with a court reporter present, to uncover inconsistencies or omissions in their financial disclosures.
- Forensic Accountants – In high-asset or complex divorce cases, I work closely with forensic accountants who can examine financial records, trace money transfers, and identify discrepancies that point to hidden funds.
- Public Records Searches – Property records, vehicle registrations, corporate filings, and even court filings can reveal valuable information the other party didn’t disclose.
My job is to protect your interests, and that means being thorough, strategic, and aggressive when we suspect financial misconduct.
What Happens When Hidden Assets Are Discovered
If we can prove that your spouse hid assets, the court has several remedies available. Under 750 ILCS 5/503(c), the court is required to divide the marital estate equitably. That does not always mean equally, especially if one party acted dishonestly.
If hidden assets are found after a final judgment, the court may reopen the case under 750 ILCS 5/510(a-5), particularly if fraud or misrepresentation occurred. Courts have awarded entire hidden accounts to the honest spouse as a penalty for financial misconduct. In other cases, they’ve issued monetary sanctions or adjusted spousal support awards to reflect the hidden resources.
The key is to act quickly. If you believe your spouse is hiding money, the earlier we investigate, the better chance we have to uncover the truth before the divorce is finalized.
Illinois Favors Fairness, Not Gamesmanship
Illinois courts are guided by principles of fairness. If one party tries to game the system by hiding money, it undermines the court’s ability to divide the estate properly. That’s why the legal system allows for discovery tools, court intervention, and sanctions. I use every available legal option to ensure that your financial future is protected and that you walk away from your divorce with what you’re entitled to.
FAQs About Hidden Assets In Illinois Divorce Cases
What Should I Do If I Think My Spouse Is Hiding Assets?
Start by collecting any financial documents you can access, bank statements, tax returns, business records, investment accounts, or loan applications. Bring those to our initial consultation. Then, during the discovery phase of your divorce, we can legally compel your spouse to provide full financial disclosure. If necessary, I’ll bring in a forensic accountant to help uncover the truth.
Is It Illegal To Hide Assets During Divorce?
Yes. Hiding assets during a divorce is a form of fraud and violates the mandatory disclosure requirements in Illinois divorce law. Courts can impose penalties, including awarding the entire value of the hidden asset to the other spouse and ordering the dishonest spouse to pay attorney’s fees.
Can Hidden Assets Be Discovered After The Divorce Is Finalized?
Yes. If hidden assets are discovered after your divorce has been finalized, we can file a motion to reopen the judgment based on fraud under Illinois law. The court has the power to amend the property division or issue sanctions against the spouse who concealed assets.
How Do Forensic Accountants Help In Divorce Cases?
A forensic accountant examines financial records for inconsistencies, traces transactions, and can provide testimony in court. They are particularly useful in high-asset or self-employed cases where money can be moved around more easily. Their work often leads to the discovery of hidden income or unreported accounts.
Can A Court Award Me A Larger Share Of The Property If My Spouse Hid Assets?
Yes. Courts in Illinois have discretion to make an unequal property division if one party engaged in misconduct, including hiding assets. In some cases, courts have awarded the entire value of the hidden asset to the other spouse as a punishment for the deception.
Is My Spouse Required To Disclose Retirement Accounts In Divorce?
Yes. All retirement accounts, pensions, 401(k)s, IRAs, and similar assets must be disclosed and are typically considered marital property if acquired during the marriage. If your spouse fails to disclose a retirement asset, that may be grounds for legal action.
Can I Subpoena Bank Or Financial Records During Divorce?
Absolutely. If your spouse refuses to provide full documentation or we believe information is being withheld, I can subpoena banks, investment firms, employers, and other institutions to obtain the records directly.
What Happens If My Spouse Transfers Assets To Someone Else Before Divorce?
Courts can reverse fraudulent transfers that were made in an attempt to hide assets. If we prove that your spouse transferred property to a friend or relative to keep it out of the marital estate, the court can bring that asset back into consideration during property division.
Call Our Schaumburg Asset Division Attorneys
At the Law Office of Fedor Kozlov, I understand how critical financial security is during and after divorce. If you suspect your spouse is hiding assets, it’s important to take swift action to protect your interests. I am committed to uncovering the truth and making sure your divorce is handled fairly and transparently under Illinois law.
Contact our Schaumburg asset division attorney at (847) 241-1299 for exceptional legal assistance and to schedule a consultation. I represent clients in Schaumburg and throughout the greater Chicago area in all aspects of divorce and family law. Let’s make sure you get what you’re entitled to.
