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IL divorce lawyerWhen most couples get married, they are thinking about the personal and romantic significance of their commitment. They are much less concerned with the financial implications of marriage. However, when spouses enter into a marriage, they merge many of their assets and debts. Undoing this financial entanglement during divorce becomes especially complicated if spouses have a high income or own high-value assets. If you or your spouse have greater than average wealth, you should know about the ways that your wealth may influence your divorce case.

Complex Assets and Hard-To-Value Property

The division of marital property is often one of the most challenging aspects of divorce. Complex assets, hard-to-value assets, and assets with fluctuating value are often especially difficult to account for during divorce. Special attention must be paid to assets such as:

  • Businesses and business investments
  • Stocks and stock options
  • Securities and investment accounts
  • Deferred compensation and bonuses
  • Overseas investments and tax shelters
  • Real estate and investment properties
  • Retirement accounts, 401(k) accounts, and pensions
  • Bitcoin and other digital currency

Child Support Deviations

Typically, child support payments are determined by statutory formulas established by the Illinois Marriage and Dissolution of Marriage Act. The parents’ net incomes are added together to find their combined net income and then this information is compared to an “income shares schedule” to find their basic support obligation. The basic support obligation is the amount of money that both parents are expected to contribute to their child’s upbringing. The basic support obligation is divided between the parents based on their respective net incomes. The parent with less parenting time makes his or her contribution in the form of child support.

The tables and formulas used to calculate a parent’s child support obligation are based on statistics and averages. If your financial situation is not typical of the average Illinois family, calculating child support using the statutory formulas may be inappropriate. Instead, the court may deviate from the typical method of determining child support and instead make a determination based on your unique circumstances.

Hidden Assets and Financial Fraud

Financial transparency is a crucial element in any divorce case but it is especially vital in high-income divorce cases. Some spouses may attempt to manipulate their divorce settlement by hiding assets, undervaluing assets, transferring funds, or falsifying financial information. They may use businesses to conceal assets or even intentionally overpay the IRS to create the illusion of a lower net worth. If you suspect that your spouse will lie about finances during divorce, speak to a divorce lawyer right away. A skilled attorney with experience handling complex divorce cases can help you uncover hidden assets and get the divorce settlement you deserve.

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IL family lawyerWhen two people get married they merge their financial lives in such a way that dividing assets and debts prove quite difficult during divorce. Property division during divorce is further complicated when the couple owns complex assets, has a particularly high income, or when a spouse refuses to be honest about his or her finances. The spouses’ financial situations will also have a dramatic impact on child support, spousal support, and other elements of the divorce. Forensic accounting may help divorcing spouses trace marital assets and debts, reveal hidden assets and income, determine how much money is available for support payments, and much more.

How a Forensic Accountant May Help During Divorce

Divorce lawyers often utilize the expertise of a forensic accountant when complicated financial circumstances or financial deception confound the divorce process. Forensic accounting is often used when a married couple owns a business or professional practice or other complex assets like stocks and stock options, retirement funds, cryptocurrency, or real estate.

Forensic accounting may also be used as an investigative tool. Divorcing spouses are expected to fully disclose accurate information about their income, business revenue, assets, expenses, and debts. In order to sway the outcome of the divorce in their favor, some divorcing spouses conceal assets or lie about finances. A forensic accountant may help your lawyer uncover hidden accounts, secret property transfers, and other sources of deception. Accurate information about finances is needed to make a determination about many different issues during divorce including asset and debt division, alimony, and child-related issues The only way to ensure you receive a fair divorce settlement or award is to base that settlement off of verifiably accurate financial data. Forensic accountants may assist in your divorce case by:

  • Investigating a spouse’s finances and looking for inconsistencies
  • Finding hidden assets, income, and revenue streams
  • Assigning a value to items with fluctuating or hard-to-determine values
  • Inventorying valuable personal property such as art, jewelry, and collectibles
  • Evaluating the long-term financial consequences of potential divorce settlements

Contact a St. Charles Divorce Lawyer

Financial issues during divorce are often complicated and contentious. If you are considering divorce and you or your spouse own a business or other complex assets, forensic accounting may be an advantageous tool. Forensic accounting may also be used to find hidden assets and reveal other forms of financial fraud during divorce. At Shaw Family Law, P.C., our accomplished Kane County family law attorneys know how to work with experts such as forensic accountants to ensure our clients receive the settlement they deserve. Call us at 630-584-5550 for a free consultation.

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IL divorce lawyerDivorce is not only a romantic separation; it is also a financial separation. Determining how assets and debts should be distributed to divorcing spouses is often one of the most complicated parts of the divorce process. Division of assets is made even more problematic when a spouse is not willing to be transparent about his or her financial circumstances. Spouses may attempt to conceal assets, understate income, overstate debts, or use other strategies to gain an unfair advantage during property division. If you are planning to divorce and you have reason to believe that your spouse may be hiding assets or otherwise lying about financial resources, an experienced divorce lawyer can help.

Financial Deception During Divorce

In order for a divorcing couple to fairly divide marital assets during divorce, each spouse must be honest and forthcoming about his or her financial resources. However, some spouses purposely lie about their financial circumstances in an attempt to manipulate property division, child support, or spousal maintenance determinations. Typically, the more complicated a spouse’s financial circumstances are, the easier it is for him or her to hide assets during divorce. If a person owns multiple bank and brokerage accounts, trusts, rental properties, vacation homes, stock options, deferred compensation, retirement plans, a business or professional practice, or other complex assets, there are many opportunities for him or her to be deceptive. However, spouses with simple financial portfolios may also lie in order to gain a financial advantage during divorce.

A spouse who is attempting to sway the divorce settlement through hiding assets may fail to report assets or revenue streams, claim that certain assets were lost, or transfer assets to a third party. He or she may:

  • Underreport income on tax returns
  • Purchase expensive items and then undervalue or “forget” about these items
  • Transfer stock to friends or business partners
  • Transfer personal assets to a “dummy” company, or a company that exists only on paper
  • Withdraw cash and hide it somewhere or “loan” cash to friends and family members
  • Intentionally overpay the Internal Revenue Service so that money is hidden during divorce and then refunded after the divorce is finalized
  • Postpone salary increases, new contracts, bonuses, or commissions until after the divorce

These are only some of the ways that a spouse may hide assets during divorce. Hiding assets is not only unethical, but it is also against the law. If a divorcing spouse is caught hiding assets, the court has the authority to assign a greater share of the marital assets to the innocent spouse. The spouse who hid assets may also face steep fines and other serious consequences.

Contact a St. Charles Hidden Assets Lawyer

If you believe that your spouse may lie about financial resources during divorce, you need an attorney who can help you uncover the truth. At Shaw Family Law, our experienced Illinois divorce attorneys collaborate with forensic accountants and other financial experts to expose financial deception and get clients the divorce settlement they deserve. To learn more about how we can help you, call our office at 630-584-5550 today and schedule a free, confidential consultation.

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