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Hidden Assets and Financial Dishonesty Can Severely Impact Your Divorce
In a divorce, each spouse must provide current, accurate financial information. Whether the divorce is settled out of court or it goes to trial, financial data is crucial. Spouses cannot reach a settlement on the division of property and debts or spousal maintenance without this information. The court cannot determine a reasonable child support payment amount without accurate financial information. Nearly every aspect of your divorce case is influenced by finances. So, what happens if a spouse lies about income or property during the divorce?
Undisclosed Assets and Hidden Property
In an attempt to sway the terms of the divorce in their favor, some spouses lie about their financial situation in the divorce. They may “forget” to disclose an offshore account or fail to mention their expensive jewelry collection. They may transfer wealth or real property to friends or family members to shelter it from division. Some spouses overpay the IRS or use a small business to hide assets. This type of financial manipulation during divorce is unlawful. If a divorcing spouse is caught lying about finances under oath, they may be held in contempt of court and subject to serious penalties.
UPDATE: Do I Have to Pay Interest on Unpaid Child Support in Illinois?
Originally published: May 11, 2020 -- Updated: August 25, 2021
UPDATE: Parents who have experienced financial issues that have affected their ability to pay child support will want to take the correct steps to avoid the issues described below. This has been a major concern for many parents during the COVID-19 pandemic, and those who have lost their jobs or who have experienced health issues that have affected the income they are able to earn will want to make sure they take the proper measures to avoid penalties for failing to meet their financial obligations.
Family courts will often recognize financial hardship experienced by parents, but unless a parent takes action to inform the court of these issues, they will be required to follow the terms of their child support order. This means they must continue making monthly payments, and in addition to making up any missed payments, they may also be required to pay interest on these past-due amounts. To avoid these issues, a parent can file a petition for a modification of their child support obligations as soon as they have experienced financial issues that affect their ability to pay. While the court may not immediately grant a request for modification, any modifications that are made may be retroactive to the date the modification request was filed.
How Are Spousal Maintenance Payments Determined in Illinois?
While a divorce can lead to financial difficulties for both spouses, there are some situations where one party may struggle to support themselves or maintain their standard of living on their own. If there is a large difference between the incomes earned by divorcing spouses, or if one spouse is a stay-at-home parent who is not currently working, a divorce court judge may decide that spousal maintenance would be appropriate. This form of support, which is commonly known as alimony, will usually be paid for a temporary period following a couple’s divorce, and it is meant to help the party who earns a lower income meet their needs while also providing them with the means to obtain the education or training they need to return to work or increase the income that they are able to earn so that they will be able to support themselves. Spouses who may pay or receive spousal maintenance will want to be sure to understand how these payments will be calculated.
How to Recognize the Signs of Parental Alienation During Your Divorce
The divorce process can be difficult for parents and children. Even if it would not be healthy for parents to stay together, and a breakup will help ensure that children will not be exposed to arguments and conflict between parents, children are likely to struggle with the changes they will experience in their lives. Both parents and children may experience strong emotions during the divorce process, including anger, sadness, guilt, betrayal, and anxiety about the future. Parents will want to help their children work through these feelings in a healthy way while providing emotional support and reassurance. Unfortunately, some parents choose to take advantage of their children’s strong emotions and use them as a weapon against their former partner. This is known as parental alienation, and parents will want to understand how to recognize this behavior and the steps they can take to address the issue.
Signs That May Indicate Parental Alienation
When Is a QDRO Needed in an Illinois Divorce?
During the divorce process, spouses will need to address multiple types of financial issues. Many of these issues will be related to the division of marital property, in which spouses must determine how all of the assets and debts they acquired during their marriage will be allocated. While dividing some types of property may be a straightforward process, a variety of complex considerations may arise when addressing assets such as retirement savings and benefits. A qualified domestic relations order (QDRO) may need to be created to ensure that these assets are divided properly, and an experienced family law attorney can make sure this type of order is created and executed correctly.
Benefits of Using a QDRO
Spouses will often save money in retirement accounts, including 401(k) accounts provided through an employer or individual retirement accounts (IRAs). Depending on the decisions made during the property division process, the funds in an account may be divided between the parties. However, if the proper procedures are not followed, withdrawing funds from an account before the account holder reaches the age of retirement can result in penalties, and taxes may also apply to these withdrawals.
Is Divorce Mediation Right for Me?
If you are getting a divorce from your spouse, it is important to learn about all of your options. An alternative resolution option many divorcing couples find beneficial is mediation. The mediation process involves working with a trained mediator to negotiate various issues in your divorce, from child custody to division of assets. Mediation may help you and your spouse reach an agreement and avoid the often stressful process of divorce litigation. However, mediation is not right for everyone.
Advantages of Mediation
During mediation sessions, you and your spouse will sit down in a quiet room and try to come to an agreement on how your divorce matters will be dealt with. Rather than providing legal advice, a mediator will facilitate the discussion and help you stay focused on the issues at hand. Here are several benefits of mediation:
What Happens if Divorcing Parents Cannot Agree on Child Custody?
If you and your divorcing spouse have children together, you are required to create a parenting plan that details how the two of you will continue to care for them after you are separated. Some of the information needed in this plan includes transportation arrangements, a parenting time schedule, and an allocation of parental responsibilites. However, matters can get complicated if you and the other parent cannot agree on a plan.
What Will Occur If and Your Spouse Cannot Come to an Agreement
Sometimes parents cannot seem to agree on a child custody arrangement. In this situation, a judge may order parents to go to mediation. During a mediation session, a court-appointed mediator will sit down with both parents and facilitate a discussion about the issues they disagree on. A mediator will not make decisions for either parent. Instead, he or she will attempt to help them come to a compromise they can both live with.
What to Do If Your Spouse Makes False Allegations Against You During Your Divorce
Going through a divorce is never easy. If your spouse makes allegations of abuse against you, it can make the process even more stressful. You may understandably be upset that your spouse is making up horrible lies about you and worry that the allegations will negatively affect the outcome of divorce or child custody proceedings. If you have found yourself in this situation, it is important to maintain your composure and take the necessary steps to rectify the situation.
How False Allegations Can Affect Your Divorce
Family law judges take accusations of domestic violence or abuse very seriously. A judge may order an emergency order of protection that requires you to leave your home or prohibits you from contacting your spouse and children.
Because change is hard on children, Illinois courts typically try to maintain the “status quo” in child-related legal matters. Consequently, an order of protection may give your spouse an advantage in your custody case. Since your kids will be with your spouse during the protection period, your spouse may argue that granting joint custody could disrupt their routines.
Will My Spouse Get Part of My Personal Injury Settlement in a Divorce?
In a perfect world, your divorce would get settled quickly and not involve any complications. Unfortunately, however, there are several matters that can complicate your Illinois divorce, including a personal injury settlement. If you are waiting for your personal injury claim to settle while getting a divorce, you should educate yourself on how your settlement may be divided between you and your spouse.
Defining Marital Property in Illinois
In the state of Illinois, marital property refers to any assets acquired during a marriage. There are particular types of property that are non-marital, such as items received as a gift or inheritance to one spouse, property obtained before the marriage, property obtained after legal separation, legal judgments given to one spouse, and assets excluded from marital property by mutual agreement. One might assume that personal injury settlements would be considered non-marital property in a divorce. However, in the state of Illinois, personal injury settlements, workers’ compensation benefits and disability benefits can be, and often are, part of the marital estate.
What to Do If Your Spouse Will Not Sign Divorce Papers
If you have been unhappy in your marriage for a long time, you may have decided to file for divorce. While the decision may not have come easy, you knew it was a necessary one. However, what if you are faced with the dilemma that your spouse refuses to sign the papers. This can definitely prolong the process and make it more stressful, but it is still possible to get a divorce.
Common Reasons Why Spouses Do not Sign Divorce Papers
It is frustrating when a spouse refuses to sign divorce papers, but it can and does occur. Some spouses may be religiously opposed to divorce, while others feel that you cannot get divorced unless both spouses sign the documents. In other situations, spouses may feel so bitter that they were served with papers that they want to retaliate.
Steps to Take If Your Spouse Will Not Sign Divorce Papers
Although getting a divorce from an unwilling spouse may seem impossible right now, do not give up. Here are a few steps you can take if your spouse refuses to sign the papers.









