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Financial Disclosure Requirements in Illinois High-Net-Worth Divorces

By Leslie Fineberg on September 1, 2025

Dividing finances in divorce is a difficult process, especially when significant wealth is involved. An Illinois high-net-worth divorce requires thorough and accurate financial disclosure. This obligation is not just a matter of good faith; it is mandated by law and enforced by the courts.

Understanding Financial Disclosure Requirements in Illinois

Under Illinois law, both parties in a divorce must disclose their full financial circumstances. This includes income, assets, liabilities, and expenses. The primary mechanism for this is the Financial Affidavit, a sworn document that must be completed honestly and in detail.

Courts rely heavily on these affidavits to ensure fair and equitable decisions, particularly regarding maintenance (alimony), child support, and property division.

High-net-worth divorces often involve complex financial instruments such as:

• Business interests
• Investment portfolios
• Real estate holdings (including multiple properties)
• Offshore accounts
• Trusts
• Executive compensation packages, including bonuses and stock options

Illinois Supreme Court Rules: Financial Disclosure Duties

The duty to disclose is codified under Illinois Supreme Court Rule 13.3.1, which governs mandatory disclosures in family law proceedings. The rule requires each party to produce key financial document. This include, but is not limited to, the following:

• Federal and state income tax returns for the past three years
• Pay stubs and proof of income
• Bank statements
• Credit card and loan statements
• Documents related to retirement and investment accounts
• Documentation of real estate holdings and other tangible and intangible assets

These disclosures must be provided within 30 days of the service of summons, and must be updated promptly if there are material changes to a party’s financial status.

Additionally, Illinois Supreme Court Rule 213 and Rule 214 allow for discovery tools such as interrogatories and requests for production of documents, further enabling the full examination of each party’s finances.

Enforcement Mechanisms Under Illinois Supreme Court Rules

Courts in Illinois take financial disclosure duties seriously, especially in high-net-worth divorces. If a party fails to comply with Rule 13.3.1 or attempts to hide assets, there are several enforcement mechanisms available:

Sanctions for Noncompliance

When one party does not meet their disclosure obligations, the court may impose sanctions, which could include:

• Monetary penalties
• Payment of the opposing party’s attorney’s fees
• Contempt of court
• Limits on the noncompliant party’s ability to present financial evidence
• In severe cases, default judgments on financial matters

These sanctions are intended to deter dishonest behavior and maintain the integrity of the judicial process.

Forensic Accounting and Financial Investigations

In high-net-worth cases, it is not uncommon for a party to attempt to undervalue or obscure their assets. Forensic accountants play an important role in these matters. By examining bank records, business accounts, and asset transfers, they help:

• Identify hidden assets
• Determine true income and cash flow
• Assess the fair market value of business interests

This level of detailed analysis is especially important in divorces involving family businesses, international holdings, or non-traditional compensation.

Motions to Compel and Court Orders

If one party fails to disclose or produce the necessary documents, the other party may file a motion to compel. The court can then issue an order requiring compliance. Failure to abide by the order may lead to a finding of contempt and additional penalties.

Courts can also appoint neutral financial experts or special masters to evaluate assets and ensure accuracy in reporting.

Reopening of Judgments Due to Fraud

If a divorce is finalized and it is later discovered that a party concealed significant assets, the court may reopen the judgment under Section 2-1401 of the Illinois Code of Civil Procedure. This rule allows parties to seek relief from judgments obtained through fraud or misrepresentation, typically within two years of the original judgment.

Full Financial Disclosure Is Mandatory

Transparency is essential to a fair and equitable outcome. Without accurate disclosures, courts cannot properly divide marital property or determine appropriate maintenance and child support arrangements.

Risks of Incomplete or Dishonest Disclosure

Failing to disclose financial information fully and truthfully has serious consequences. In addition to court-imposed sanctions, the offending party may suffer lasting damage to their credibility, which can influence judicial decisions on property, maintenance, and even parenting time.

In cases where fraud is discovered, the repercussions may include reversal or modification of financial orders and reputational harm, especially for public-facing professionals or business owners.

Strategic Legal Counsel Makes the Difference

Nottage and Ward, LLP is listed by Martindale-Hubbell in its Bar Register of Pre-eminent Lawyers, and our Chicago divorce and family law firm brings more than 35 years of experience to Illinois high-net-worth divorce cases.

We know the legal landscape and how to strategically navigate disclosure issues. Whether we are assisting with financial affidavits, guiding clients through discovery, or enlisting forensic experts, our goal is to ensure transparency and fairness.

Our Chicago divorce attorneys are adept at:

• Preparing and reviewing financial affidavits
• Identifying red flags in opposing disclosures
• Coordinating with financial professionals to assess asset values
• Taking proactive steps to compel disclosure and enforce compliance

Best Practices for Navigating Financial Disclosures

To protect your interests during a high-net-worth divorce in Chicago, consider these actionable steps:

1. Gather Documentation Early Begin collecting tax returns, investment statements, business records, and real estate documents as soon as divorce is imminent.
2. Be Transparent Full disclosure is not only legally required, but it also sets a cooperative tone that can lead to faster and less contentious proceedings.
3. Consult a Financial Advisor A financial advisor or accountant can help clarify your financial picture and anticipate disclosure requirements.
4. Engage an Experienced Attorney A skilled divorce attorney is critical in complex financial cases. They will ensure you meet all disclosure requirements, challenge incomplete disclosures by your spouse, and safeguard your interests.
5. Avoid Asset Transfers or Unusual Spending Any sudden changes in your financial behavior will be scrutinized and may be interpreted as attempts to hide assets. Maintain normal spending and avoid large transfers.

When to Seek Legal Help

If you are approaching a divorce and you or your spouse have substantial assets, early legal guidance is essential. Even minor oversights in disclosures can have lasting implications for your financial future. The sooner you work with an attorney, the better prepared you’ll be to comply with disclosure rules and protect your interests.

Speak With an Experienced Chicago High-Net-Worth Attorney

At Nottage and Ward, LLP, we help clients meet their legal obligations while advocating for equitable outcomes. We offer the guidance you need every step of the way.

Call us at (312) 332-2915 to learn more today.

Let our experience work for you in protecting what matters most.