It is far from uncommon for either spouse in a divorce to try and hide certain assets while both parties are still in the middle of determining their property’s value. Illinois is an equitable distribution state, meaning that assets in a divorce are split equitably, which might not necessarily mean equally.

The size of assets being hidden can vary, but it can be a good idea to take a closer look if you believe your spouse could be hiding assets. A further of an examination of certain factors can occasionally lead to a surprising finding.

Ways Spouses Hide Assets

Every divorce is different, but some of the more common ways in which spouses may try to hide assets can include:

Retirement funds and pensions can be some of the most valuable assets owned by a married couple, and ownership of these assets will need to be addressed during a divorce. In Illinois, these assets are subject to equitable distribution. This means that they will be divided fairly, but not necessarily exactly equally, between the divorcing spouses. When making decisions about these assets and taking steps to transfer or allocate funds between spouses, it is important to follow the correct procedures. A qualified family law attorney can provide invaluable guidance and ensure that a person's rights and financial interests will be protected during the divorce process.

Evaluating and Dividing Retirement Accounts

In Illinois, all property and assets acquired during a marriage are considered “marital property” and are subject to equitable distribution in a divorce. This includes retirement accounts such as 401(k)s and IRAs.

The first step in dividing retirement accounts is determining their value. This can be done by using account statements or other documentation to calculate the current balance of each account. Once the value of the accounts has been determined, they can be divided between the divorcing spouses either through negotiation or by court order.

The division of property and liabilities is often a complicated and contentious aspect of the divorce process. When spouses own a small business, the issue of property distribution is even more complex. If you or your spouse own a business or you jointly own a family business, you may be unsure of how to handle the business during the divorce. There is no one-size-fits-all solution to business owner concerns during divorce. The way you handle ownership of the business will depend on your specific needs, financial resources, and long-term goals. When deciding how to proceed, consider the following questions.

Who Has Ownership Rights to the Business?

Per Illinois law, marital property is property accumulated during the marriage. However, determining the identity of your business as marital or non-marital is not as straightforward as you may think. If a spouse owns the business before getting married, it is usually considered non-marital property. However, if the other spouse contributed time or resources to the betterment of the business, the business may be considered partially or fully marital.

How Much is the Business Worth?

Whether you decide to do with the business, you will need to know the business’s value. There are several ways to value a small business, but many people use the business’s fair market value to inform the property division process. This is the price a buyer would pay for the business. It is recommended that business owners have their business professionally valued in a divorce. You and your spouse may choose to use the same business appraiser or separate appraisers depending on your particular situation.

If you have a dog, cat, horse, bird, or another pet, you most likely do not think of your pet as mere property. You may even consider your pet part of the family. However, under Illinois divorce law, pets are classified as property and subject to the same asset division laws as vehicles, bank accounts, and other types of property. Fortunately, the law was updated in 2018 to reflect the fact that pets are more than mere possessions.

What Happens if Divorcing Spouses Disagree About Pet Ownership?

Understandably, many people have strong feelings about their pets. This can make deciding who should keep the pet after a divorce extremely difficult. Spouses are encouraged to negotiate a property division arrangement that works for them. However, property division concerns are not always able to be resolved out of court. If a divorcing couple cannot reach an agreement on pet ownership, the court may need to make a decision on the spouses’ behalf.

Per Illinois law, property that was obtained by either spouse during the marriage is marital property. Property that a spouse owned before the marriage is non-marital property and belongs solely to that spouse in the event of divorce. If you got your pet during the marriage, both spouses have a right to the pet. If a spouse owned the pet before the marriage, it may be considered non-marital property. However, if both spouses cared for the pet and paid for pet supplies and veterinary care, the pet may be considered marital property regardless of who first acquired the pet.