When going through a divorce, it is not uncommon for one spouse to attempt to hide or dissipate assets in order to prevent their spouse from receiving an equitable amount of their assets. This can be a frustrating and stressful experience, but there are several telltale signs that your spouse may be attempting to dissipate assets. Today, we are going to discuss what several of those signs are. If your marriage is heading towards divorce, consider contacting knowledgeable divorce attorneys to lawfully complete the divorce process while ensuring your rights remain protected and advocated for. 

What is the Definition of Dissipating Assets? 

Dissipating assets refers to the intentional or reckless use, depletion, or destruction of marital assets by one spouse for their own benefit or to prevent the other spouse from receiving their fair share of those assets in a divorce settlement. If you can prove that your spouse dissipated assets, the court may distribute the rest of the marital estate in a way that compensates you for this loss. 

Signs Your Spouse May Be Dissipating Assets 

Look out for these signs which may signify your spouse is trying to dissipate assets, including:

The dissipation of assets is a term used to describe the improper use of marital assets by one spouse before a divorce. In divorce cases in Chicago and elsewhere, the dissipation of assets can significantly impact the distribution of property and assets between spouses. If one spouse is found to have dissipated assets, a court may consider this when determining the division of assets in a divorce case. For a court to make a finding of dissipation, it must be shown that the assets were used for a purpose unrelated to the marriage and that the use of assets reduced their value. This could include using marital funds for a mistress, buying expensive gifts for friends, or squandering money on gambling or drugs. 

Suppose you are getting divorced and believe your spouse is engaged in behavior that qualifies as dissipating assets, or you have uncovered information during divorce proceedings that give you a reason to believe your spouse has been involved in this behavior in the past. In that case, an experienced attorney can help you make sense of the situation and provide guidance moving forward through the divorce proceedings. 

The Impact of Dissipation of Assets in Divorce Cases

The impact of dissipation of assets can significantly affect divorce proceedings and may reduce the offending spouses' share of marital assets. However, the dissipation of assets is a complex issue that can be difficult to prove. To prove dissipation, a spouse must provide clear and convincing evidence of the improper use of assets. This can involve tracking financial transactions, gathering witness statements, and reviewing bank records.

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.