The Risks of Hiding Assets in Chicago Divorce Cases

Divorce often involves intense disputes over property and finances and some individuals might be tempted to hide assets in an attempt to secure a more favorable settlement in their Chicago divorce case. However, hiding assets during a divorce can lead to severe legal, financial, and personal repercussions.

The legal repercussions can include penalties for contempt of court, charges of perjury, and reopening settlements at a later date. Hiding assets is a violation of court orders. Courts take honesty very seriously in divorce proceedings. If you’re caught hiding assets, you could be found in contempt of court, leading to fines, penalties, and even jail time. Providing false information about your assets on financial affidavits or in court can lead to perjury charges. Perjury is a serious criminal offense that can result in significant fines and imprisonment. If hidden assets are discovered after the divorce has been finalized, courts can reopen the case. This can lead to the redistribution of assets, meaning you could end up with a less favorable settlement than if you had been honest from the start.

The financial repercussions can also be substantial.  From legal fees, loss of assets, and required forensic accounting, it can take a toll. Defending against allegations of hiding assets or responding to investigations can be costly. You may need to hire additional legal representation, which can result in substantial legal fees.  Also, courts have broad discretion in divorce cases. If you are found to have hidden assets, the judge may award a larger portion of your estate to your spouse as a penalty. In some cases, the entire hidden asset might be awarded to your spouse. If there’s suspicion that assets are being hidden, forensic accountants might be employed to investigate and the cost of these services is often high and can be ordered to be paid by the party who hid the assets.

The personal repercussions will include damage to reputation, strain on relationships, and emotional fallout. Being caught hiding assets can severely damage your reputation, both personally and professionally. This can have long-lasting effects on your personal relationships and professional opportunities. Divorce is already a challenging time for families. Engaging in dishonest behavior can increase tension and animosity, making co-parenting and other post-divorce relationships more difficult. Also, living with the stress and fear of being caught can take a significant emotional toll. The ongoing deceit can lead to anxiety, guilt, and a constant fear of repercussions.

With the sophisticated tools available today to Chicago divorce attorneys, hiding assets is increasingly difficult. Forensic accountants and divorce attorneys are skilled at uncovering hidden assets through various means, including requisite financial discovery, lifestyle analysis, and tracking digital footprints.

Hiding assets in a divorce is not only unethical but also fraught with significant risks. The legal, financial, and personal repercussions can far outweigh any perceived benefits. Honesty and transparency are crucial in navigating the complexities of divorce proceedings. In the long run, being forthright can lead to a fairer settlement and a more positive outcome for all involved. If you are going through a divorce in Chicago and are tempted to hide assets, it’s wise to reconsider. Consult with a reputable divorce attorney, such as Jennifer Ward of WARD FAMILY LAW, LLC who can guide you through the process ethically and legally, ensuring that your interests are protected without resorting to deceitful tactics.  Reach out to her for a free initial consultation today at jward@wardfamilylawchicago.com or via telephone at 312-803-58