Divorce is stressful enough emotionally, financially, and practically. Spouses who entertain the idea of hiding assets aren’t just evaluating numbers. They’re taking on risks that can impact their futures in very real ways. An Illinois divorce lawyer at Stange Law Firm, PC, can help ensure that you have properly disclosed all necessary assets.
In Illinois, each party is required by law to disclose their finances fully and honestly. Not only is asset hiding unethical, but it can completely unravel your case and subject you to much harsher legal consequences than you stand to gain from the act of concealment itself.
Illinois Law Requires Full Disclosure
Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/501) requires divorcing parties to disclose all of their income, assets, debts, and financial information to the court and each other. The Illinois Supreme Court Rule 13.3.1(b) requires the parties to sign financial affidavits under oath and to attest that the information they provided is true. Failure to disclose is more than a mere violation of a procedural rule; it is a violation of the law. The penalties can be severe.
What Does Hiding Assets Look Like?
In Illinois, the marriage rate was 5.1 per 1,000 with a divorce rate of 1.2 per 1,000. Many divorces require a fair division of assets. This requires both spouses to disclose their financial standing. However, some individuals illegally conceal assets in order to walk away from the divorce with more. Hiding assets may look like the following:
- Underreporting income
- Failing to list accounts
- Transferring money to friends or family so they cannot be traced
- Classifying an asset as separate when it is marital property
- Delaying bonuses or other income until after the divorce in an effort to consider it separate
Consequences of Hiding Assets
If the judge believes you’ve hidden assets, the court may alter the distribution of property in the other spouse’s favor. In some cases, the judge may award the entire value of a hidden asset to the other spouse as a penalty, even if you thought it was yours alone.
The courts in Illinois may also order the spouse who hid assets to pay the other spouse’s attorney’s fees and costs associated with uncovering hidden assets. Judges can also fine you in an attempt to recoup wasted court time and deter future misconduct.
Damaging your credibility with the court may have consequences beyond just property division. Judges do not look kindly upon deception, which can also influence their decisions regarding maintenance, child custody, and support. Hidden assets discovered after a divorce is final can give the other party a basis for vacating the judgment under the Illinois post-judgment relief statute.
Criminal Consequences
In some cases, a person can face criminal penalties for concealing assets. For example, if concealing assets results in you lying under oath, you may be charged with the following:
- Perjury. In Illinois, this is a Class 3 felony and can result in prison time and hefty fines.
- Contempt of court. This can also lead to jail time and/or fines.
The irony is that by hiding your assets, you risk losing more than if you had been truthful about them in the first place. A judge is likely to give the other spouse the asset you tried to hide, as well as some of your marital property, to punish you for your wrongdoing.
How Stange Law Firm, PC, Can Help
Emotions can become extremely charged during divorce, but that doesn’t mean you should shy away from full disclosure. Promptly and completely revealing all the facts early in the divorce process is much better for your credibility, can help you avoid sanctions, and usually results in more predictable outcomes. Negotiated divorce settlements prepared with complete financial information also tend to close more quickly and with less stress.
An experienced attorney can help you identify your assets and liabilities, represent you in negotiations, and protect your legal rights without incurring the penalties that no one wants to face.
We serve clients throughout Illinois with divorce and property division legal issues, including at the Cook County Circuit Court, DuPage County Court, and other local family law courts. We’ve been focusing exclusively on family law matters since 2007 and have guided countless individuals through every aspect of the divorce process with clarity.
FAQs
Q: What Is Considered Hiding Assets in Illinois?
A: Asset hiding can take many forms, from not declaring income, bank accounts, investments, crypto, property, or debt in a divorce proceeding to transferring assets to friends or family members, delaying bonuses, or underreporting income. Illinois law requires full and complete financial disclosure, and willful concealment can have serious legal repercussions.
Q: Is Hiding Assets Illegal in an Illinois Divorce?
A: Yes. It is against Illinois divorce law and court rules to hide assets. Both of Illinois’ spouses are required to fill out and sign sworn financial affidavits. Since these are sworn documents, it is possible for the spouse to face sanctions, contempt of court, or even criminal charges, such as perjury, if the spouse lies.
Q: What Happens if the Court Discovers Hidden Assets?
A: The penalties that an Illinois judge may impose if hidden assets are discovered include awarding the hidden asset to the other spouse, adjusting the overall division of property, ordering payment of the other party’s attorney fees, or even reopening a final divorce judgment. The potential penalties can often be more severe than any short-term gain obtained by hiding assets.
Q: What Should I Do if I Suspect My Spouse Is Hiding Assets?
A: Speak with a family law attorney as soon as possible if you suspect assets are being hidden. A lawyer can request additional discovery, involve financial professionals if necessary, and work to protect your rights. The earlier you act, the better chance you have of discovering assets before the divorce is finalized.
Contact Stange Law Firm, PC, Today
If you suspect your spouse may be hiding assets or need assistance with full disclosure of your own, Stange Law Firm, PC, can help you. Contact us today for more information.