How Do Illinois Courts Handle Divorce When One Spouse Has Been Hiding Assets for Years?

 Posted on June 16, 2025 in Division of Assets

In Illinois, spouses have a legal duty to disclose all assets — marital and non-marital — during a divorce. When one party attempts to hide, transfer, or obscure the value of assets, the court may impose serious consequences. Judges have broad discretion to address this type of misconduct, and they often do so with significant financial penalties.

Whether the hidden assets involve secret bank accounts, undervalued businesses, cash-only income, or property titled in someone else’s name, the law allows for both aggressive discovery and decisive remedies. A skilled litigation team of Elmhurst, IL divorce lawyers with experience in tracing assets, issuing subpoenas, and examining financial records can make the difference between a fair outcome and a devastating loss.

The Duty to Disclose

Illinois courts expect both parties in a divorce to participate in full and honest financial disclosure. Under Illinois Supreme Court Rule 213(f), and more specifically within family law cases, each party must file a verified financial affidavit and submit supporting documentation. This includes bank statements, pay stubs, tax returns, and evidence of debts and expenses.

Failure to disclose an asset, whether intentionally or through omission, can be interpreted as bad faith. If one spouse hides assets, and the court later discovers them, the judge has the authority to decide how the assets will be divided – and it usually does so in a way that penalizes the spouse who hid them. 

But what if the concealment occurred years before the divorce was filed? What if assets were being quietly funneled out of joint accounts, stock options were deferred, or trusts were created without the other spouse’s knowledge? The courts can still act, but it takes time, effort, and legal precision to uncover and prove it.

Common Signs of Hidden Assets During Divorce

Spouses who hide assets have a limited number of ways to do so, and these strategies often leave telltale signs to a trained eye. These include:

• A sudden drop in income despite a consistent lifestyle

• Unexplained debt or withdrawal activity

• Secretive behavior around financial records

• New business entities or partnerships

• Transfers to relatives or friends without record-keeping

Asset Concealment in High-Net-Worth Cases

The likelihood of hidden assets increases in cases involving family-owned businesses, real estate holdings, or significant investment accounts. When one spouse controls the financial operations of a closely held corporation or professional practice, they may delay billing, overstate expenses, or hide client payments in anticipation of divorce.

Sometimes, this may have been going on for years, making it very difficult to trace where the money went. A boutique litigation firm with experience in high-conflict and high-asset divorce is best suited to identify these tactics and develop strategies to counter them. These may include:

• Requesting court-appointed financial experts

• Freezing accounts during pending litigation

• Filing emergency motions to preserve evidence

• Conducting extensive depositions to uncover contradictions

Tools for Uncovering Hidden Assets

Uncovering hidden wealth in divorce requires a sharp legal strategy and a deep understanding of how people move money to avoid detection. This is not just about asking for bank statements, but rather about knowing where to look, what to demand, and how to connect the dots.

Attorneys begin with subpoenas to banks, credit card companies, investment firms, and employers. These often reveal accounts that were never disclosed or spending that does not match the reported income. Depositions come next, where lawyers question the other spouse, accountants, business partners, or family members under oath. These conversations can expose contradictions or lead to new sources of financial information.

In complex cases, attorneys go beyond the basic financial affidavit. They demand business records, ledgers, credit applications, and even emails or texts that may reveal hidden transfers or side deals. Lifestyle analysis is also key. When someone reports modest earnings but maintains luxury vehicles, international travel, or private schooling, the court takes notice.

Forensic accountants are often brought in to trace funds, uncover offshore transfers, and follow the money through businesses or family members. Their reports can be critical in showing the judge what is really happening behind the scenes.

Because hidden assets are often concealed through years of careful planning, discovery must be thorough, strategic, and relentless. A good attorney knows that what is on paper is just the beginning.

Hiding Assets During Divorce Has Real Consequences in Illinois Courts

Illinois courts take asset concealment seriously. In many cases, courts have imposed sanctions, compelled the turnover of hidden assets, or reopened finalized judgments when fraud is later discovered. If a party believes assets are being hidden, it is essential to raise the issue early, assert it in pleadings, and demand compliance through court orders.

Illinois family law judges understand that financial deception corrodes the integrity of the divorce process. Even if both parties appear professional and courteous in court, a history of hidden transactions will cast doubt on the credibility of the entire case. Judges have the power to compel, investigate, and punish spouses who hide assets and will use that power to both punish the person and deter similar behavior from other people.

Judges may also award attorney’s fees to the spouse forced to conduct extra discovery due to concealment. Under 750 ILCS 5/508, a court can require the dishonest party to pay all or part of the legal expenses related to asset recovery.

Moreover, attempts to hide money through shell companies, altered records, or offshore accounts may rise to the level of criminal fraud. In rare but serious cases, such conduct could lead to a criminal investigation, especially if it involves tax evasion.

Litigation in Cases of Hidden Assets May Be a Necessity

In high-asset cases involving dishonesty or imbalance of financial power, compromise is not always possible. Skilled litigation through discovery, motion practice, and trial is often the only way to secure a fair outcome. This requires a law firm with courtroom confidence, investigative acumen, and an ability to manage complex financial information without losing sight of the client's goals.

In Elmhurst and across DuPage County, our boutique firm represents clients who expect more than just a settlement. They expect accountability, discretion, and a team that can outwork and outthink the opposition.

Frequently Asked Questions About Hidden Assets in Illinois Divorce

How do I prove my spouse is hiding assets?

You do not need absolute proof before raising the issue, but you must offer enough specific information to justify deeper discovery. This might include discrepancies in tax returns, evidence of hidden bank accounts, missing business income, or an unexplained change in lifestyle. Your attorney can then file discovery requests, issue subpoenas, and request a forensic accountant to begin tracing the funds.

Can the court reopen a divorce case if hidden assets are found afterward?

Yes. If one spouse discovers substantial assets that were intentionally concealed and not addressed in the final judgment, the court may reopen the case. However, timing is critical. Typically, petitions must be filed within two years of the final judgment, and the requesting party must show due diligence and newly discovered evidence.

Can gifts or transfers to family members be reversed?

Potentially. If a transfer was made in anticipation of divorce and did not have a real purpose besides taking the money out of the marital estate, the court can classify the transaction as dissipation or fraud. The judge may then assign a monetary value to the transferred property and credit that amount to the innocent spouse in the division of assets.

How far back can the court look when investigating hidden assets?

Illinois courts generally focus on the period after the marriage began to break down. However, if a spouse can show that concealment began earlier — especially if it involved transfers out of marital accounts, hidden trusts, or shell corporations — the court may investigate several years back. This often depends on how long the parties were separated and the complexity of the financial records.

Is it worth hiring a forensic accountant?

Yes, particularly in high-asset cases. A forensic accountant can uncover underreported income, track transfers between accounts, analyze business ledgers, and assess whether financial statements are manipulated. Their reports often carry substantial weight with judges and can provide the objective evidence needed to support a claim of asset concealment.

Can my spouse use cryptocurrency to hide money?

Yes, and hiding money with cryptocurrency is becoming more common. Cryptocurrency can be difficult to trace without proper documentation. However, if your spouse purchased crypto through a regulated exchange or moved funds into digital wallets, forensic tools and subpoenas can still uncover those transactions. Failure to disclose crypto holdings can result in the same penalties as any other form of concealment.

Will I have to testify if we go to court over hidden assets?

Likely, yes. In contested financial cases, your testimony may be needed to establish the history of financial management, what you knew or suspected, and how the discovery of the hidden assets affected you. You may also be asked to testify about spending patterns, lifestyle changes, and your spouse’s behavior. Your attorney will help you prepare for these questions and protect your rights.

How long does a divorce involving hidden assets take?

For obvious reasons, divorces that involve hidden assets typically take longer than average cases. While a straightforward divorce in Illinois might be resolved in six to 12 months, a contested case with financial concealment can take 18 months or more and sometimes even years. The delay often comes from the extended discovery process. Attorneys need time to issue subpoenas, review financial records, depose witnesses, and work with forensic accountants. If the case goes to trial, court scheduling and motions can add further delays. The more complex the asset structure, and the more resistance from the concealing spouse, the longer the case will take to fully resolve.

What if I cannot afford to go to trial over hidden assets?

Litigating hidden asset cases can be expensive, especially when it involves expert witnesses, forensic accountants, and extended discovery. However, Illinois courts recognize that one spouse often has greater financial control. If you are at a disadvantage, your attorney can petition the court for interim attorney’s fees under 750 ILCS 5/501(c-1). This allows the judge to order your spouse to contribute to your legal costs during the divorce. The court may also award fees at the end of the case if it finds that your spouse caused unnecessary litigation or acted in bad faith. In some cases, uncovering hidden assets leads to a greater share of the marital estate, which can offset the cost of litigation. If you suspect financial misconduct, speak to an attorney early; there may be ways to level the playing field.

Work With a DuPage County, IL Attorney Who Knows How to Uncover the Truth

Divorce involving hidden assets is not about paperwork. It is about power. If your spouse has been hiding wealth, manipulating finances, or preparing for divorce behind your back, you need a lawyer who will treat this as seriously as you do. Weiss-Kunz & Oliver, LLC has a reputation for litigation excellence and the experience to uncover even the most deeply buried financial trails.

Call our Elmhurst, IL divorce attorneys at 312-605-4041 to schedule a consultation and begin the process of protecting what is yours.