The Law Offices of Nancy Kasko, LLC

Call Today for Your FREE Consultation
Call Us 630-836-8540

4320 Winfield Road, Suite 200, Warrenville, IL 60555

Subscribe to this list via RSS Blog posts tagged in hidden assets

Wheaton divorce lawyer hidden assets discoveryPlanning for life after divorce is tough enough, even when there are no child custody and support matters to address, and both spouses will continue on in their careers without interruption after the marriage’s dissolution. Divorce takes an emotional toll even in circumstances where the decision is mutual and there is no animosity. Many divorces, however, are rife with tension and disagreement over financial issues, including the division of marital assets, spousal support, and, when there are children involved, child support. 

In obtaining the fair and equitable distribution of assets required by Illinois law, as well as in securing the spousal and child support you need and deserve, the legal process of discovery is instrumental in uncovering income or assets which a spouse may intend to hide from the asset division process.

Illinois Divorce Law Utilizes a Principle of Equitable Distribution

When divorce occurs in Illinois, the state utilizes a principle of “equitable distribution” with regard to a marriage’s income and assets. An equitable distribution is not necessarily an equal division, but is defined broadly as the division of property in “just proportions.” 

...

Winfield divorce discovery lawyerWhen parents divorce, the dissolution of the marriage must be formalized in a court of law, and decisions must be made regarding the allocation of parental responsibility, child support, and, when appropriate, spousal support. When, in a contested divorce, spouses cannot agree on child and spousal support, a full and fair financial accounting of income and assets is absolutely essential. In obtaining such an accounting, Illinois law provides spouses and their attorneys with processes which allow them to discover all income and assets relevant in establishing child and spousal support orders.

“Discovery” is the Legal Process Used to Determine Assets and Income

It is not uncommon, when a marriage is in disrepair and it becomes apparent that divorce is on the horizon, for one spouse to attempt to hide assets and other sources of income with the intention of lowering their anticipated child and spousal support obligations. Such efforts, however, not only stand in contradiction to the principle of equitable division of marital property mandated by Illinois law, but a spouse’s attempts to avoid paying their fair share of financial support can lead to a variety of legal consequences, including being held in contempt of court. 

When one spouse attempts to hide income or assets, the other spouse, with the assistance of an experienced divorce attorney, may compel them to disclose complete and accurate financial information. In this formal process, the legal tool of “discovery” is central. Specific forms of discovery include depositions (oral testimony), interrogatories (written answers), requests for documents, and court ordered inspections of financial records. The reason why the word “compel” is appropriate with regard to the discovery process is because discovery is conducted under penalty of perjury (lying under oath), which can result in grave legal consequences.

...

Posted on in Divorce

West Chicago divorce hidden assets attorneyIllinois law requires the equitable distribution of all marital property in the event of divorce. Equitable distribution is, under state law, the fair and just division of marital property. Importantly, a fair and just division is not necessarily an equal division. Besides employment-based income, earnings from investments must also be analyzed, as well as benefits from pensions and other sources. Liabilities (e.g. debt) are also subject to equitable distribution. 

In all matters, both parties are obligated to be fully transparent regarding income, assets, liabilities, and other financial matters during a divorce. If you have reason to believe that your spouse is lacking in transparency with regard to their complete financial picture during your divorce, an experienced divorce attorney will work to compel the discovery of income and hidden assets.

Means By Which a Spouse May Attempt to Hide Assets

It is upsetting to learn, but there are several ways a spouse may be attempting to hide income or other financial assets. Once it is clear that the marriage will end in divorce, a spouse may attempt to defer income, including bonuses and promotions, so that it is received after the process of equitable distribution. Estate planning resources, such as a trust, may also be misused to place income in an account beyond the proper reach of equitable distribution. 

...
DuPage County Bar Association Kane County Bar Association Illinois State Bar Association Chicago Bar Association DuPage Association of Women Lawyers
The Law Offices of Nancy Kasko, LLC
Search
Facebook Twitter LinkedIn
Back to Top