Hiding assets in an Illinois divorce is illegal under the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/501), which mandates full financial disclosure. Despite this, some spouses employ creative tactics to conceal money or assets to skew equitable distribution, spousal maintenance, or child support outcomes in their favor. In these circumstances, it is helpful to know what red flags to look for and common methods used to hide assets in a divorce.
Methods Used to Hide Marital Assets
Overpaying Taxes for Later Refund – A spouse may overpay federal or state taxes by inflating withholdings or making oversized estimated tax payments. After the divorce is finalized, they claim a large refund, effectively shielding funds from the marital estate during the divorce settlement.
Deferring Income or Bonuses – Business owners, freelancers, or executives, may delay bonuses, commissions, or client payments until after the divorce. This reduces reported income, lowering potential spousal or child support obligations.
Stashing Cash in Secret Accounts – Funds are siphoned into undisclosed bank accounts or crypto accounts, often at different institutions, offshore accounts, or to prepaid debit cards. Small, gradual cash withdrawals from marital accounts may be deposited elsewhere to avoid detection.
Purchasing High – Value Items for Later Resale – Because physical assets are less liquid and harder to track during asset division, a spouse converts marital funds into tangible assets like art, jewelry, rare coins, or luxury vehicles, intending to sell them post-divorce.
Undervaluing Assets – A spouse intentionally lowballs the value of marital assets like real estate, businesses, or investments to reduce their share in the division. This may involve manipulated appraisals or claiming assets need costly repairs.
Paying Fake Debts to Friends and Family – A spouse “repays” nonexistent loans to friends or family, who agree to return the money after the divorce. These transactions may lack documentation or be backdated to appear legitimate.
Contact an Experienced Divorce Lawyer for Help
Divorcing spouses sometimes employ creative tactics to conceal money or assets to keep more than their fair share and reduce court ordered spousal maintenance and child support. If you are concerned that your spouse is hiding assets in a divorce, it is important to work with your attorney to take actionable steps to identify all assets and income for the purposes of marital property division, child support and spousal maintenance. Contact the family law office of Ronald L Bell & Associates P.C. today for immediate assistance.