Chicago Hidden Assets in Divorce Attorneys

Divorce Attorneys in Chicago Help Uncover Hidden Assets

The process of dividing financial assets in a divorce is almost always a difficult matter. Contentious disputes must be resolved, complex assets must be sorted out, and, in some cases, hidden assets must be discovered.

It is not uncommon for a spouse to hide assets, especially when highly valuable items are involved. Typically, hidden assets are either placed in the possession of third parties or behind false documents. Exposing such assets requires the assistance of legal professionals, forensic accountants, and other relevant experts.

If you believe your spouse is hiding assets from you in a divorce, contact Nottage and Ward, LLP, for reliable legal counsel. Our experienced Chicago divorce lawyers have extensive experience handling complicated financial issues in a divorce and can help you obtain your fair share of the disputed assets.

To schedule a consultation with one of our divorce attorneys, call (312) 332-2915.

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Who Usually Hides Assets in a Divorce?

Few married couples share equal control over the family's finances. In most cases, one of the spouses handles most or all of the bills, investments, and other financial matters; they typically have managing power over all joint accounts and other shared assets. During the asset division process of divorce, they may use this to their advantage and keep certain assets undisclosed.

However, there are instances in which the spouse who manages the couple's finances is not the "breadwinner," and the spouse with the higher income keeps assets and resources away from joint accounts while putting money aside in case of divorce.

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The Role of a Chicago Divorce Attorney

In divorce cases, Chicago hidden assets lawyers are crucial in identifying and recovering assets one party may have concealed. These legal professionals have the skills to navigate the complexities of financial investigations. They work closely with forensic accountants to trace funds and property that have been deliberately hidden to avoid fair distribution.

Their role extends beyond just finding assets — they also provide representation in court, ensuring that the evidence of hidden assets is presented effectively. Your attorneys can file motions to compel disclosure and request court orders that mandate the revealing of assets.

Court orders for disclosure are a powerful tool in the legal process to uncover hidden assets in divorce cases. If you suspect that your spouse is concealing assets, you can request the court to issue an order compelling the other party to reveal all financial information. These orders demand full transparency and can cover various financial documents, including bank statements, tax returns, and investment records.

Asset freezing allows you to maintain the financial status quo while the divorce is being settled. It's a critical tool to prevent the dissipation of assets during divorce proceedings. This legal action temporarily restricts the transfer or sale of assets, ensuring they remain available for equitable distribution upon divorce settlement. The freeze can apply to bank accounts, real estate, and investments.

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How Can Hidden Assets Be Found in a Divorce?

When a spouse starts acting differently about money, it signals a closer look. Maybe they're suddenly secretive about financial statements, or they've started to take cash out of the bank without an apparent reason.

You'll also want to look for irregularities in bank statements, such as deposits from unknown sources or withdrawals that don't have a clear explanation. Comparing past tax returns with current financial statements may indicate a significant drop in reported income without logic.

It's also a good idea to pay attention to any documents relating to investments, retirement accounts, or property holdings. Unexplained or unaccounted-for expenses can be indicative of hidden assets. If you notice charges for luxury items, trips, or services that were not known to you, or if there's a significant amount of cash spent on items that don't appear to be in possession, these could be signs of concealed financial activity.

Keep an eye out for a sudden decrease in the value of investment accounts or a drop in reported rental income, as these can also be signs of manipulation. In these cases, examining pay stubs, business ledgers, and tax returns for inconsistencies with known income sources is critical. Such discrepancies can often be uncovered through a detailed financial investigation.

Discovering hidden assets is primarily a matter of knowing where to look. According to financial experts, these are some of the most common ways spouses hide marital assets:

• Undervalued Purchases: This includes valuable art, jewelry, collectibles, antiques, vehicles, and other personal property.
• Falsified Reports of Income at Tax Time: Since only officially reported income is used in most financial analyses, a spouse may report lower income to retain more of their actual income.
• Overpaying at Tax Time: This might seem counterintuitive, but it's a strategy used to mask assets during a divorce. By deliberately paying more taxes than required, a spouse can create a situation where the government owes them a refund. This refund is then secured as an asset that may not be immediately recognized or accessible during the divorce negotiations.
• Transfers of Assets to a Third Party: A spouse may transfer stock accounts and other assets to a relative, business associate, or dummy company, again, to be recovered after completion of the divorce proceedings.
• Hidden Cash: A spouse may physically hide large amounts of cash in a safety deposit box, in a container beneath their bed, and so on.
• Intentionally Underreporting Income: This is a tactic often used to disguise the true financial standing of a spouse. This can take various forms, such as deferring salary, bonuses, or commissions until after the divorce is finalized. Business owners may pay their employees more than usual or inflate expenses to reduce reported profits.
• Creating Fake Expenses: This is used to justify the outflow of money that is actually being stashed away. This is another trick used to hide assets.

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Legal Consequences for Hiding Marital Assets During Divorce Proceeds

When a spouse fails to comply with court orders in the discovery of assets, they may face financial penalties and legal consequences. Courts do not take non-compliance lightly, especially in matters as serious as divorce, where equitable asset division is at stake. Financial penalties may include fines and the payment of the other party's lawyer fees, which are intended to deter spouses from hiding assets.

Non-compliance can lead to more severe legal consequences, such as being held in contempt of court, which may result in jail time. The court could also rule against the non-compliant party during the division of assets, awarding a larger share to the other spouse as a punitive measure. These repercussions are designed to ensure fairness and adherence to the legal process, and they underscore the importance of transparency in divorce proceedings.

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Uncover Hidden Assets with Our Chicago Divorce Lawyers

At Nottage and Ward, LLP, we work with an extensive network of financial advisors to help our clients uncover hidden assets. If you decide to hire us as your legal representatives, we will go through your spouse's financial records with a fine-tooth comb to make sure that you get your full and fair share of the assets.

The lawyers at our firm are on standby – contact our Chicago office today by calling (312) 332-2915 for immediate legal assistance.

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Additional Information

• What Is Forensic Accounting?
• Your Secret Stash of Cash Won’t Be So Secret When Going Through a Divorce
• Here’s Why You Need a Forensic Accountant to Deal with Your Divorce Investments