Can Assets Be Frozen During an Illinois Divorce?

 Posted on November 19, 2024 in Property Division

A National Endowment for Financial Education poll analyzed "financial infidelity" among married adults. Two out of five of the adults polled admitted they had committed some type of financial deception during their marriage. Financial infidelity includes hiding purchases, money, or accounts or lying about debt owed or income earned.

Men were found to be more likely than women (47 vs. 39 percent) to report committing financial deception. While it would be nice to be able to trust one’s spouse during a divorce, realistically, if spouses are not transparent with finances during the marriage, they are unlikely to be transparent during the divorce, during the division of assets.  

By the time a divorce is in the works, spouses may have little trust in one another, particularly when it comes to finances. One spouse may believe the other is already hiding assets or will hide or remove assets. As a result, one or both spouses can ask the court to freeze marital assets during the divorce until those assets can be appropriately divided and distributed.

If you believe your spouse is hiding assets so you will not receive your fair share, speaking to a Naperville, IL family law attorney from Law Office of Ronald L. Hendrix, P.C. can be beneficial. Illinois is an equitable division state, which means that marital assets are divided fairly rather than split down the middle as they are in community property states.

Freezing Assets, Automatic Financial Stay, or Financial Restraining Order?

Some states have an automatic financial stay that begins when a divorce is filed and prevents both spouses from dissipating, hiding, or removing assets. However, Illinois does not have an automatic financial stay for divorces. A spouse can request a financial restraining order, which can freeze marital assets during the divorce.

The court will determine whether a financial restraining order should be granted based on a risk assessment of whether one spouse has done or threatened to do something that would harm the other financially. For example, if one spouse drained the marital joint bank account in a fit of rage in the past, there would be a good basis for a financial restraining order.

The other spouse has the right to refute any allegations made against him or her, so it is essential that the claims be properly documented. A financial restraining order can do the following:

• Keeps both spouses from selling, transferring, or disposing of any marital assets without first obtaining court approval.
• Prevents both spouses from making investments, taking out loans, or making any other substantial decisions without the court's approval.
• Stops both spouses from canceling health, life, auto, or other existing insurance policies.
• Prevents both spouses from removing the other’s name from bank accounts, credit cards, properties, or other assets.
• Stops both spouses from changing beneficiaries on life insurance policies or other accounts with a beneficiary.
• Prevents both spouses from emptying a joint bank account.
• Places safeguards to prevent hiding, selling, or destroying marital assets.  

Violating a financial restraining order can result in contempt of court, which could trigger serious sanctions from the family court. These include orders to pay the other’s spouse's legal fees, fines, and orders to return the assets. In extreme cases, a spouse could even face jail time for violating a financial restraining order.

Contact a DuPage County, IL Division of Assets Lawyer

If you are worried about how your marital assets will be divided during your divorce, it can help to speak to a knowledgeable Will County, IL division of assets attorney from Law Office of Ronald L. Hendrix, P.C.. We always listen carefully to every client as we strive to meet their goals and interests during a divorce. Attorney Ronald Hendrix is a court-appointed mediator; in addition to his law degree, attorney Hendrix also holds a master’s degree in guidance and counseling. Contact Law Office of Ronald L. Hendrix, P.C. at 630-355-7776 to schedule a free consultation.