How May Assets Be Hidden in a Divorce?

 Posted on September 19,2023 in Illinois Divorce

Divorce proceedings tend to be high stakes, high stress, and high drama, especially when one party attempts to conceal assets. Hidden assets can significantly impact the outcome of a divorce settlement, resulting in a distribution of property that does not accurately correspond with the financial situation of the couple involved. If you think your spouse is hiding assets, share your concerns with your lawyer. An experienced lawyer will be helpful in ensuring that hidden assets can be uncovered and that, ultimately, a fair distribution of assets can be achieved during the divorce proceedings.

Deliberately Undervaluing Assets

In Illinois divorce proceedings, a common way assets can be hidden during divorce is by undervaluing them. This tactic involves intentionally underestimating the worth of real estate, businesses, or investments. Parties may provide inaccurate appraisals or manipulate financial records to downplay the value of their assets. To combat this, it is essential to consult with professionals such as forensic accountants who specialize in asset valuation and can accurately assess the true worth of these assets.

Transferring Assets

Another method employed to hide assets is transferring them to third parties. Spouses may transfer ownership of properties, businesses, or other valuable assets to family members, friends, or even offshore accounts. These transfers are often made with the intention of reclaiming the assets once the divorce is finalized. Uncovering these hidden transfers requires thorough investigation, including scrutinizing financial records, bank statements, and transaction histories. The assistance of forensic accountants and experienced divorce attorneys is crucial in identifying and challenging these transfers during divorce proceedings.

Creating Complex Financial Structures

Sophisticated financial structures, such as trusts or partnerships, can be used to obscure the actual ownership of assets. These complex arrangements make it challenging to trace and identify the assets involved. In these situations, forensic accountants can employ techniques such as forensic auditing and data analysis to uncover the existence of such structures and identify the true value of hidden assets.

Contact a St. Charles Divorce Lawyer

In divorce proceedings, the presence of hidden assets can significantly impact the fairness and accuracy of the division of property. By undervaluing assets, transferring ownership, or creating intricate financial structures, spouses may attempt to hide their true worth. However, with an attorney's legal knowledge and a forensic accountant's accounting knowledge, it is possible to reveal these hidden assets and ensure a just and equitable outcome in the divorce proceedings. For legal help in your divorce, contact the Kane County divorce attorneys with Weiler & Associates, Inc.. Call 630-331-9110 for a private consultation.