Signs Your Spouse is Lying About Money During Your Divorce

 Posted on August 18,2021 in Divorce

Getting divorced is as much a legal and financial process as it is an emotional process. Undoing the financial entanglement characteristic of a marriage relationship can be confusing, complicated, and often, exhausting. Spouses’ financial circumstances play a massive role in the division of marital property and debt, child support, and spousal maintenance determinations.

So, what happens if a spouse lies about his or her assets and income during divorce? If the other spouse does nothing to assert his or her rights, the answer may be that the deceptive spouse gains an unfair financial advantage during the divorce. This is why it is important for divorcing spouses to be vigilant for signs of financial deception.

Hiding Assets to Shield Them from Division During Divorce

Illinois law states that each spouse is entitled to an equitable, or fair, share of the marital estate during divorce. However, some spouses try to stop the other spouse from getting his or her fair share by hiding assets.

Your spouse may hide assets by:

• Failing to report assets or income sources
• Temporarily transferring assets to a colleague, friend, or family member
• Overpaying the IRS and recouping the money in a tax return after the divorce
• Hiding cash in a safety deposit box or other undisclosed location
• Using a business to disguise personal assets as business assets
• Undervaluing assets like collectables, antiques, art, or other hard-to-value property

Your spouse may also underreport his or her income or take cash payments “under the table” to make his or her income appear lower than it actually is for the purposes of manipulating spousal support or child support determinations.

Red Flags Your Spouse is Hiding Assets or Underreporting Income

In many marriages, one spouse handles most of the financial decisions. If you are the spouse who has traditionally been out of the loop regarding the household finances, it is important to start gathering information. The more you know, the better position you are in to spot deception.

A spouse who intends to lie about finances in a divorce may:

• Be very secretive about money or refuse to discuss financial matters with you
• Not let you see tax returns or other financial documents
• Reroute mail to P.O. box or other location
• Block your access to online bank accounts or financial software
• Claim financial hardship despite there being little evidence to support this claim
• Sell or give away assets
• Make unusually large purchases
• Claim to have debts you have never heard about before
• Report that his or her business is suddenly failing

Contact a Palatine Divorce Lawyer

If you suspect that you spouse is currently hiding assets in your divorce or you plan to get divorced and you doubt that your spouse will be honest about finances, contact the Law Office of Nicholas W. Richardson, P.C. Arlington Heights divorce lawyer Nicholas W. Richardson can help you uncover evidence of financial deception and seek a divorce settlement that is based on the actual facts. Call 847.873.6741 for a free, confidential initial consultation to learn more.

Source:

https://www.forbes.com/sites/forbesfinancecouncil/2017/09/22/is-your-spouse-hiding-money-from-you/

https://www.forbes.com/sites/jefflanders/2012/03/14/divorcing-women-heres-where-husbands-typically-hide-assets/