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What Are Ways that Divorcing Spouses Falsify Financial Information?

Posted on in Divorce

DuPage County divorce attorney asset division

Finances have a tremendous impact on divorce. Without accurate, up-to-date financial information, it is impossible to negotiate a fair divorce settlement. This is why each spouse is required to complete a financial affidavit during the first stages of the Illinois divorce process. Unfortunately, not every spouse is truthful when filling out the affidavit. Spouses may lie about their income, assets, debts, and expenses in order to sway the divorce settlement in their own favor. Doing this is not only unethical, it is also unlawful. An experienced divorce attorney can help protect your rights to marital assets.

Hiding Assets By Transferring Funds

One of the easiest ways to hide money during a divorce is to simply move the funds into a bank account that the other spouse is not aware of. A spouse who wants to artificially lower his or her net worth may transfer money from joint accounts into separate accounts. He or she may even transfer assets to a friend or relative with the understanding that the loan is temporary and that the money will be returned after the divorce. Another way spouses may try to transfer money under the radar is by getting cash back on everyday purchases like groceries. Doing this once or twice will not make a major impact, but over time, thousands of dollars may be transferred into cash this way.

Temporarily Lowering Their Income

Property and debt division, spousal maintenance or alimony, child support, and several other divorce issues hinge upon the question of finances. A spouse may try to manipulate financial information in an attempt to lower his or her child support obligation or avoid paying alimony. A spouse who wishes to report a lower income may turn down or delay promotions or raises. He or she may also fail to report income from stocks or investments. Some people even overpay the IRS so that they lower their net worth during divorce and then receive the money back via a tax return.

Undervaluing a Business or Hiding Business Revenue

A business is an asset just like any other. Unless a business was acquired and kept completely separate from joint or marital assets, the value of a business is subject to division during the divorce. A spouse who wants to gain an advantage in the divorce may create fake payments to nonexistent employees or fabricate expenses. A business owner may also defer commissions or delay invoicing clients until after the divorce is finalized.

Contact a Cook County Divorce Lawyer

You deserve a divorce settlement or award that is based on your spouse‚Äôs actual financial circumstances. A skilled and dedicated Hinsdale divorce attorney from Botti Marinaccio, LTD can help you uncover hidden assets and safeguard your rights during divorce. Call our office today at 630-575-8585 to set up a confidential case review.

 

Sources:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

https://www.aol.com/article/finance/2014/04/01/divorce-hide-assets-spouse/20858336/

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Botti Marinaccio, LTD.

630-575-8585

2015 Spring Road, Oak Brook, IL 60523

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