Is Your Spouse Hiding Assets?

 Posted on January 27,2014 in Distribution of Assets

If you and your spouse have discussed the possibility of divorce or you perceive that separation is imminent, it may be a good idea to pay attention to your marital financial portfolio. In some relationships, one spouse manages financial matters for the family, but the other spouse should stay well-informed about marital assets and debts.

Under the Illinois Marriage and Dissolution of Marriage Act, an equitable split of marital assets is required in a divorce. Equitable refers to dividing marital property fairly and looking at several factors such as contributions, marital agreements, economic conditions, and marriage duration. When one spouse hides assets, an equitable solution is harder to obtain, but entirely possible when working with a knowledgeable divorce firm.

Five Red Flags for Hidden Marital Assets

While there are a myriad of options for hiding assets, there are some common practices people use that leave an unintended trail of evidence.

1. Transfer of Ownership – Has your spouse transferred ownership of big ticket items such as cars or real estate to other family members or friends? They may be trying to reduce their overall net worth.
2. Converting Cash – Has your spouse started buying expensive jewelry, antiques, paintings or collectibles? It is possible that they are trying to hide money in items projected to increase in value over time.
3. P.O. Boxes – Is there evidence that your spouse has a P.O. Box or alternate mailing address? They may be receiving statements for hidden accounts.
4. Money Transfers – Has your spouse been transferring regular sums of money to an account you do not have access to? They may be building a secret cash reserve.
5. Sudden Income Drop – Has your spouse’s income radically dropped without explanation? They may be trying to create a false financial picture.

Be vigilant and follow up on sudden changes in financial practices. If you or someone you know in Chicago, Illinois is facing a divorce and suspects hidden assets, please contact A. Traub & Associates Attorneys at Law today. We help our clients fight for equitable outcomes.