3 Reasons Not to Hide Money Before Your Divorce

 Posted on August 20, 2025 in Property Division

When a marriage is ending, it can be very difficult to be emotionally objective, especially when finances are at stake. If you believe your spouse will try to take more than their fair share or spend recklessly before the divorce is finalized, it may be tempting to move money around or hide certain assets. While this may feel like self-protection, it can backfire in serious and lasting ways.

In Illinois, the divorce process is not simply about splitting property; it is a legal proceeding governed by clear rules. As of August 2025, the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5) still requires both parties to make a full, honest disclosure of all assets and debts. Hiding money is not just frowned upon; it can damage your credibility, weaken your legal position, and even lead to penalties.

An experienced DuPage County divorce attorney can help you protect what matters most without crossing legal lines. This attorney has spent over 20 years helping families resolve family law issues and reach resolutions that fit their lives.

Hiding Money During Divorce Can Lead to Legal Consequences

When you file for divorce in Illinois, both you and your spouse are required to complete a financial affidavit. This is a sworn statement listing all your income, bank accounts, investments, debts, and other financial interests. Because it is sworn under penalty of perjury, intentionally leaving out information is not only dishonest but also unlawful.

If a judge discovers that you concealed money or assets, the court may:

• Award a larger share of marital property to your spouse

• Order you to pay your spouse’s attorney’s fees

• Impose sanctions or hold you in contempt of court

• Refer the matter for criminal charges in extreme cases

Illinois courts take asset disclosure very seriously. For example, if you transfer funds to a friend, family member, or business account to avoid including them in the marital estate, the court can reverse those transfers and penalize you. Judges look unfavorably on any attempt to manipulate the financial picture, and once your credibility is damaged, it is difficult to regain the court’s trust.

Hiding Assets Can Damage Your Ability to Negotiate a Fair Divorce Settlement

Divorce settlements often depend on the willingness of both parties to work together. If your spouse’s attorney finds out you have hidden assets, it can poison any possibility of cooperation. Even if your spouse was willing to compromise on certain issues, they may decide to fight for more, sometimes out of principle, sometimes out of suspicion.

When trust is lost, the process becomes more contentious, which means negotiations and trial preparation are likely to take longer, your attorney’s fees will be higher, and the overall process is going to be more stressful for everyone.

In Illinois, marital property is divided under the principle of "equitable distribution," which means the division must be fair, not necessarily equal. By openly disclosing all assets, you give your attorney the ability to argue for a fair division based on factors such as your contribution to the marriage, your economic circumstances, and your future earning potential.

If you hide money, however, you remove the opportunity for strategic, good-faith negotiation. Worse, the court might assume you are capable of paying more in support or taking on more debt than is realistic, because they suspect you are hiding resources.

Hiding Assets During Divorce Can Cost You More in the Long Run

Some spouses hide money because they believe it will leave them in a better position after divorce. In reality, it often leads to worse financial outcomes. Illinois law allows judges to make "disproportionate" property awards when one spouse has attempted to conceal assets. That means if you are caught, you might lose not only the hidden funds but also a greater portion of the marital estate.

For example, if you hide a $50,000 account and your spouse later discovers it, the court could award that entire account, and more, to your spouse. You may also be ordered to pay interest, legal costs, and possibly sanctions.

Even if you think you have been discreet, digital banking records, tax filings, and account statements often tell the full story. Forensic accountants and financial investigators can trace funds through complicated transfers. Once the truth comes out, the financial penalties and legal fees can far exceed any amount you thought you were "saving."

What You Can Do to Get a Fair Divorce Settlement Instead of Hiding Assets

If you are concerned about protecting your finances during divorce, there are lawful and strategic steps you can take. First, work with your attorney to identify and classify all marital and non-marital assets. Marital assets are generally acquired during the marriage, while non-marital assets may include property owned before the marriage, gifts, or inheritances.

Next, gather and organize financial records early. This includes bank statements, tax returns, mortgage documents, investment account records, and any business ownership documents. Having complete documentation strengthens your position and speeds up the process.

If necessary, discuss temporary financial protections. Your attorney can ask for temporary orders to prevent your spouse from draining accounts or selling property while the divorce is pending. These legal safeguards work both ways and can help ensure fairness without resorting to concealment.

Finally, consider mediation. If you and your spouse can work together with a neutral mediator, you may reach a settlement that feels fair to both sides without dragging the process into prolonged litigation. This can protect your assets and save you significant legal costs.

Contact a DuPage County, IL Divorce Attorney

Every divorce is unique, and financial concerns are often the most complex part. An attorney who understands both the legal requirements and the human realities of divorce can help you avoid costly mistakes. With over 20 years of experience in Illinois, we have guided clients through high-asset divorces, complex property divisions, and difficult financial disputes.

If you are facing divorce and are worried about protecting your assets, the smartest step you can take is to get legal advice before making any financial moves. Contact a DeKalb County, IL asset division lawyer at The Law Office of Matthew M. Williams, P.C. by calling 630-409-8184 to schedule your initial consultation. With over two decades of experience, we can help you protect your finances and work toward a settlement that serves your future.