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Why you must disclose all of your assets during a divorce

On Behalf of | Sep 26, 2022 | Family Law |

If you are going through a divorce, you know how stressful the situation can be. This is especially the case when there is a ton of money on the line.

Sometimes people try to hide some of their assets to reduce the value of their spouse’s potential settlements. But even if you do not intend to be dishonest, you could be overlooking certain things. For example, you might have recently spent a lot of money from a business account and made your revenue look lower than it is. Mistakes like this qualify as hiding assets.

How the court uncovers hidden assets

Divorce courts are often on the lookout for hidden assets. The court may have a forensic accountant review all of the financial information that you and your spouse have provided. The accountant may even obtain a subpoena to obtain your financial records from your banks and other institutions. The court will likely discover any assets that you have not disclosed.

What might happen if you get caught hiding assets

In Illinois, courts do not take hidden assets lightly. Not only can a mistaken affidavit lead you to pay a larger portion of the divorce settlement, but you may also have to cover some of your spouse’s legal expenses as punishment. On top of this, you might have to deal with unnecessary conflicts and more time in the courtroom.

When emotions run high, it is important to remain calm and focused. By fully disclosing all of your assets, you can avoid trouble and expedite the divorce process.