Financial Dishonesty in Your Divorce: What You Need to Know
Although most people rarely think about it, marriage is a financial partnership as much as a romantic one. Consequently, there are many financial matters to sort out during a divorce. The spouses' financial circumstances heavily influence property division, child support, and spousal maintenance determinations during a divorce. Divorcing spouses are asked to provide full financial disclosure so that the spouses, their attorneys, and the court can make informed decisions.
Unfortunately, some spouses are tempted to hide assets or lie about their financial situation during a divorce in order to gain an advantage. This type of financial dishonesty can have serious consequences. It is important for divorcing spouses to understand the legal ramifications of financial deceit so that they can protect themselves from unfair outcomes in court.
How Do Divorcing Spouses Try to Hide Assets?
Financial dishonesty during a divorce can take many forms. Some spouses may hide money in offshore accounts to avoid including it in the marital estate. Others may underreport income or obscure the source of income on tax returns, to reduce their share of alimony or child support payments. Additionally, some divorcing spouses will transfer assets without disclosing the transaction or create fake debt to lower their net worth. Business owners may even undervalue their business or transfer assets to the business without disclosing it.
What Are the Consequences of Financial Dishonesty?
If a divorcing spouse is accused of financial dishonesty, he or she may face serious consequences. The court may impose fines for perjury and other financial penalties if it finds that the spouse has lied about his or her finances. If the financial dishonesty is not recognized before the divorce is finalized, the other spouse is robbed of the right to a fair distribution of marital assets and accurate support calculations. This is why it is so important for divorcing spouses to fully and accurately report all income, assets, and debts on their financial disclosure as well as be vigilant for signs of financial dishonesty from the other spouse.
If you are concerned that your spouse is hiding assets during your divorce, contacting an experienced family lawyer is important for help. An experienced attorney can walk you through the divorce process, identify potential signs of financial dishonesty, and assist you in obtaining the assets and support you are entitled to during your divorce
Source:
https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000
