If one spouse fails to fully disclose assets in an uncontested divorce, the other spouse might later challenge the divorce agreement. The court might modify it or even throw out the agreement. The spouse who was lied to could end up with more property or financial support if the court redistributes assets to correct an imbalance.
In some cases, the non-disclosing spouse may have to pay attorney’s fees or face other penalties. Erlich Law Office can help if you suspect incomplete disclosure in Oakbrook Terrace. Call (630) 538-5331 today.
How Hidden Assets Affect an Uncontested Divorce
If one spouse fully or partially hides assets in an uncontested divorce, the agreement the spouses make may be unfair.
- Property division: Illinois law requires an equitable division of marital property. If a spouse hides bank accounts, investments, or other property, this skews the division.
- Child and spousal support: Hidden income can affect the calculation of child support and maintenance. Courts base support on actual income, not on what one spouse chooses to reveal, and this can shortchange children and dependent spouses.
- Trust in the process: Concealing assets undermines the integrity of an uncontested divorce. It can change a simple process into a contested and costly one.
- Financial strain on the other spouse: When one spouse hides assets, the other may be left with fewer resources to cover living expenses, such as rent, groceries, and utilities. The cost of living in Oakbrook Terrace is high, with costs being 24% higher than the rest of Illinois on average.
- Extra work: A spouse who is shortchanged may need to take on additional jobs or longer hours, for example, a parent who has to pick up weekend shifts instead of spending time with children.
- Reduced stability for children: Concealed income can mean less money for children’s needs, leading to moves into smaller homes, changes in schools, and difficulty paying for extracurricular activities.
Without a fair share of marital assets, the honest spouse may be unable to save for retirement, go back to school, or invest in a new home, while the dishonest spouse benefits from hidden financial security.
Legal Consequences of Failing to Disclose Assets in Divorce
Even in amicable splits, one spouse may hold back financial information, especially if he or she assumes the other spouse will not investigate or press the matter. Commonly hidden assets in an uncontested divorce include bonuses, commissions, stock options, and cryptocurrency.
Spouses may also underreport self-employment or business income, or transfer assets to friends or relatives temporarily. Alternatively, spouses might overstate debts or expenses.
The legal consequences can depend on what exactly happened and how and why the assets were not disclosed. Judges in Illinois weigh the intent behind the omission, the value of the hidden asset, and the impact on the fairness of property division.
Purposeful Concealment
If the concealment was deliberate, such as intentionally hiding bank accounts or transferring property to a relative to avoid sharing it, harsher penalties are more likely. The innocent spouse could get a larger share of the marital estate, and the dishonest spouse may also have to pay attorney’s fees.
Apparent Mistakes
Sometimes, omissions appear accidental. A spouse may say he or she forgot to include a small retirement account or misreported income due to confusion. The court simply may require the parties to correct the financial affidavit and adjust the settlement terms.
Not Clear-Cut
Sometimes, concealment is not entirely clear-cut. For example, a spouse might transfer assets to a friend or relative without fully understanding that doing so is illegal during a divorce. Alternatively, a spouse may omit accounts out of both confusion and an attempt to minimize division.
If the concealment caused harm or was intentional, the spouse could face sanctions, loss of credibility, and redistribution of assets.
Court Remedies
The court may recalculate child support or spousal maintenance orders to ensure that children and spouses receive the financial support to which they are entitled. The court can reopen the divorce case and modify a marital settlement agreement. The wronged spouse may end up with the property that the other spouse concealed. Further, the dishonest spouse may have to pay fines and the other spouse’s attorney’s fees.
In extreme cases of failure to disclose assets in divorce, the dishonest spouse may face perjury charges. This is a criminal offense.
Long-Term Costs of Dishonesty
Trying to hide assets in an uncontested divorce can end up being more expensive versus being honest from the start. For example, litigation to uncover concealed assets often erases the financial savings that uncontested proceedings initially promised. The loss of trust between the spouses also comes at a cost.
Steps to Take if You Suspect Your Spouse Concealed Property or Income
You have options if you believe your spouse is not being truthful about his or her finances during an uncontested divorce. You also have options even if the divorce has been finalized.
Consult an Uncontested Divorce Lawyer in Illinois
No matter where you are in the divorce process, asking an uncontested divorce lawyer to review financial documents and Illinois marital settlement agreements provides an extra layer of protection. A lawyer can help you identify red flags and advise you on next steps.
Request Financial Documentation
Both parties must exchange financial affidavits for calculating support and dividing assets in divorce. If you suspect dishonesty, you can request supporting documents such as tax returns, pay stubs, bank and credit card statements, retirement account summaries, and business records. These documents, especially when all considered together, can reveal inconsistencies or omissions in the income and assets a spouse reports.
Consider Mediation
Sometimes, it is misunderstandings rather than intentional concealment that lead to one spouse wondering if the other is hiding assets. In these cases, divorce mediation in Oakbrook Terrace may be a good option. It offers a neutral environment where both spouses share documentation and clarify financial matters. Mediation can avoid unnecessary conflict while offering transparency.
Use Discovery Tools
If suspicions of hiding assets in an uncontested divorce remain, your attorney can file motions for discovery, depositions, or subpoenas to get more financial details. This step does move the case toward a contested divorce. However, it may be necessary to ensure proper asset identification.
Watch for Common Mistakes
Some parties in an uncontested divorce may assume they do not need to double-check their spouse’s financial disclosures. However, common mistakes in uncontested divorce include:
- Signing a marital settlement agreement without reviewing financial documents
- Trusting verbal assurances rather than written statements
- Rushing to finalize the divorce without addressing financial concerns
What If the Divorce Has Been Finalized?
You may find out about hidden assets a few months or years after your divorce is finalized. This may occur when you file taxes, apply for a mortgage, or review financial aid forms for your children. Sometimes, your former spouse’s lifestyle may not match the income he or she reported in the divorce. In other cases, a routine credit report, estate planning, social media posts, or even information that friends or relatives share with you might reveal “surprise” accounts, property, or business interests.
How Long Do You Have?
Generally, you must file a motion to vacate within 30 days of the final judgment. However, in cases of uncovering fraud, misrepresentation, or newly discovered evidence, you may be able to petition the court for relief within two years.
After two years, your options are narrower, but relief may still be possible. For example, the court may still approve relief if the deception was severe. Another approach could be a civil lawsuit.
The sooner you act after learning about the hidden assets, the stronger your case. A divorce lawyer can determine which deadlines apply and the best way to move forward.
Hidden assets in an uncontested divorce can change the outcome of the proceedings. Erlich Law Office can help in the Oakbrook Terrace area. Contact us today.
FAQs about Hidden Assets in an Oakbrook Terrace Uncontested Divorce
Can I Reopen My Divorce Case if I Find Out Later That My Spouse Hid Assets?
Illinois law allows you to petition the court to reopen and modify a marital settlement agreement. You must show that your spouse failed to disclose property or income. Courts may redistribute assets in your favor.
What if I Signed the Settlement Agreement Without Realizing My Spouse Concealed Assets?
You may challenge the agreement if you later discover deception. An uncontested divorce lawyer in Illinois can help you file the necessary motions to protect your rights.
How Can I Prevent Problems With Hidden Assets in an Uncontested Divorce?
Proper preparation goes a long way. Make sure you are not accidentally leaving out assets. Exchange detailed financial documents, consult with an attorney, and consider mediation if disputes arise.
