Entrepreneurs, Business Owners, and Self-Employed Spouses May Hide Assets or Income During Divorce

 Posted on July 11,2022 in Divorce

Finances play a major role in any divorce case. When a married couple divorces, they will divide their shared property and debt equitably. Each spouse’s income and assets also influence child support, spousal support, and other aspects of the divorce.

Some spouses try to sway the divorce in their favor by lying about their financial circumstances. They may underreport income, hide assets, or inflate debts or expenses in an effort to secure a more favorable outcome. Business owners and spouses who are self-employed have nearly countless opportunities for this type of financial deceit. However, a skilled divorce lawyer can find evidence of hidden assets and income and fight for a fair divorce outcome.

Underreporting Income in an Illinois Divorce

Divorcing spouses are required to submit financial disclosures to the court that list their assets and income. However, some spouses are not truthful about the amount of money they make. Self-employed spouses and entrepreneurs may have an easier time lying about income than traditional w-2 employees. However, any individual may find sneaky ways to underreport income.

Undervaluing the Business

Businesses are treated the same as other assets in a divorce. This means that if a business is a marital asset, both spouses are entitled to an equitable share of the company. Spouses may decide to sell a business and divide the proceeds. When selling or dividing a business is not practical or preferred, the non-owning spouse may be compensated for his or her share of the company with other assets. For example, the entrepreneur spouse may keep the company but compensate the other spouse with real estate assets, vehicles, or other property.

Business owners may undervalue their business to avoid paying the other spouse for his or her fair share. They may falsify financial records, use cash transactions, overpay taxes, defer invoices, or depreciate business assets to make the company appear less valuable.

Get Legal Help to Find the Truth

If you are divorcing a business owner or entrepreneur who is not being truthful about finances, contact a divorce lawyer for help. Your divorce outcome should be based on true, current financial circumstances. An experienced attorney may use forensic accounting, discovery tools, subpoenas, and other means of uncovering the truth.  

Contact a Kane County Divorce Attorney

If you are getting divorced and you suspect that your spouse is lying about income, property, debts, or other financial circumstances, contact Goostree Law Group for help. Our St. Charles divorce lawyers have the experience and legal know-how needed to find hidden assets and protect your rights. Call 630-584-4800 for a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000