Divorce can be demanding and taxing, especially when there is suspicion of hidden assets. The main reason someone would consider hiding their assets and finances during a divorce would be to minimize any financial losses that a spouse may suffer due to the split. 

Having a divorce attorney by your side can help you uncover important documents and financial records so your divorce settlement is based on accurate financial information. While a spouse may be able to ask for these things alone, there is no guarantee that they will be given truthfully. An attorney can request these documents using discovery tools such as subpoenas and requests for production. If the spouse does not comply or hides anything, they can risk serious consequences. 

Common Ways Spouses Hide Assets

It is not always easy to spot when a spouse may be hiding assets. The following may be signs that a spouse is hiding assets or lying about income during divorce: 

Illinois is an “equitable division” state, meaning that marital property and debts divided by the court do not need to be divided equally, but rather the law requires that it be divided equitably. Property division may be negotiated and agreed upon by the spouses or decided in court. While the division of assets does not need to be equal, it should be fair, regardless of marital factors such as who was the household provider or who purchased what. 

Marital Property vs. Non-Marital Property 

When evaluating assets, divorcing spouses may be able to divide their assets into two categories: material property and non-marital property. Assets that are considered marital property are all things that were acquired during the marriage and before the couple was legally separated. Assets considered non-marital property are all things acquired before the couple was legally married. Assets appointed through inheritance or gifted during a marriage can also be considered non-marital property. 

Dividing Different Types of Property

Deciding on the division of properties is going to lead to difficult conversations. When deciding what is fair for both parties, it is important to go into these conversations with a level head and willingness to negotiate. Knowing the different types of property that will be discussed will make these conversations easier to settle. 

Many people who have friends in other states who have gone through a divorce can are surprised to learn that property division during divorce varies from state to state. Community property laws dictate a 50-50 split of all marital property. Illinois is among the majority of states using equitable division laws as opposed to community property laws. Equitable distribution involves a fair but not necessarily equal distribution of marital assets.

Illinois law can be rather complex when it comes to determining the distribution of marital property, and a number of factors can influence court decisions in these cases. The value of property, the spouses’ earning capacity, and each party’s contribution to the marital estate can all be factors that dictate how property will be distributed.

How Equitable Distribution Applies to Your Divorce

Courts only utilize equitable distribution when divorcing spouses cannot negotiate an agreement regarding their marital property settlement. Equitable distribution will only apply to marital property, or the property that was acquired during the marriage. It does not include property obtained during the marriage by gift or inheritance, which is considered separate property.

Throughout a marriage, couples wind up sharing virtually everything from a house to bank accounts. When spouses decide to make the difficult decision to file for divorce and dissolve their marriage, they must discuss how to divide this shared marital property. They may consult a divorce attorney to discuss who will remain in the family home, which spouse will receive most parenting time or custody of the children, and how debt payments will be divided and paid off. Most people focus on these big-ticket items. However, many other types of overlooked shared marital property are essential to consider when filing for divorce. 

Pets

Spouses may overlook pets when considering how to divide shared marital property during a divorce. Although pets may feel like family members, pets are considered property in Illinois. Before 2018, when deciding who gets what during a divorce, pets were treated the same as any other type of property. The court did not award joint ownership or make “pet custody” arrangements. New provisions enacted after 2018 allow spouses to create joint ownership agreements for pets and consider the pets’ best interests.

Airline and Travel Points 

Credit cards and shared debts are often considered in divorce proceedings. However, many people tend to push aside included assets, such as airline mileage points. If both spouses shared a credit card or had shared expenses and debts, they will also share the incentives, such as travel points. 

When two people marry, they join their lives as well as their finances. A huge part of the divorce process is reversing this financial entanglement. Spouses will need to either decide how to divide their jointly held assets or have the court divide assets for them. This process can become very complicated, especially when spouses have complex or high-value assets.

Out-of-Court Property Division Settlements

Ideally, divorcing spouses can work out a property division agreement on their own. Out-of-court settlements can save divorcing spouses time, frustration, and money. There are several alternative resolution methods that may help spouses reach an agreement on the division of debts and assets. Mediation is a process during which spouses meet with a mediator who helps them discuss unresolved divorce issues and develop a solution that works for both parties. Collaborative law is a process during which the spouses and their attorneys work collaboratively to reach a divorce settlement.

Property Division Decided by the Court

Some spouses are unable to reach a property division settlement through alternative resolution methods or other means. In this case, the court will divide marital property based on a legal doctrine called “equitable distribution.” The couple’s shared property will be divided fairly based on many different factors, including: