Uncovering Hidden or Wasted Assets During an Illinois Divorce

 Posted on June 10, 2025 in Divorce

Among the most important concerns during the divorce process is the division of property between the two parties. Having an uncooperative spouse in the case is something that can occur, but having one who actively tries to dissipate assets leading up to and during the divorce is an entirely separate problem . 

Attempting to hide or waste property to avoid dividing it in a divorce is illegal and punishable under the law. If you think your spouse might be doing either, you should contact an Oak Park, IL divorce lawyer to take immediate legal action and protect your right to a fair divorce settlement. 

What Is the "Discovery Phase" of a Divorce?

During divorce proceedings, both you and your spouse will work with your attorneys to obtain relevant information from each other regarding subjects that need to be addressed  in your divorce. This is called the "discovery phase", and it is an essential step for understanding your financial situation, especially for understanding what the law classifies as "marital property". Illinois uses what is known as an "equitable distribution" standard in divorces, which means that your marital property is supposed to be divided fairly, but not always necessarily equally. To ensure that the property distribution process is fair, the law requires full disclosure of all assets and debts by each party during the discovery process.

What Is Meant by "Asset Dissipation" in an Illinois Divorce?

During discovery, you may see that "asset dissipation" has been occurring with your spouse. In Illinois, "asset dissipation" is defined as misusing marital assets for the benefit of only one spouse, and for reasons unrelated to the marriage, while the marriage is undergoing an "irretrievable breakdown". 

In other words: "Asset dissipation" is wasting your shared money once the marriage is clearly over. Spouses sometimes do this to hurt the other spouse financially, or to benefit themselves, without considering how it will affect others. Common examples of wasting or dissipating assets include excessive spending of shared funds, damaging property intentionally, or attempting to hide assets. If your spouse had an affair during your marriage and used marital funds in connection with the affair, that could count as a dissipation of assets. 

Proving "Asset Dissipation"

Evidence of "asset dissipation" which is sometimes found during discovery includes:

• Bank statements that show unusual or excessive financial activity;

• Credit card statements that show purchases for non-marital purposes, like hotel rooms for an affair;

• Income reported on tax returns which is not reflected in the financial information shared during discovery;

• Communications that contain information about spending or other actions related to dissipation; and,

• Witness statements from friends, family or financial experts who can testify about wasteful behavior.

One of the most common forms of "asset dissipation" is attempting to hide marital property in order to avoid dividing it, and an experienced divorce attorney can help identify hidden assets and hold your spouse accountable.

How Do You Know if Your Spouse Is Hiding Assets During an Illinois Divorce?

If you think your spouse could be hiding assets, keep a critical eye on your finances. For example, look out for a sudden decrease in your spouse’s income. It could indicate that they are sending funds elsewhere. Also, look for unusual transactions, like large withdrawals or transfers. Are they overpaying debts or undervaluing their business? If your financial situation is complex or asset-heavy, the risk of hidden assets is higher. An experienced divorce attorney can help identify these types of activities..

Contact an Oak Park, IL Divorce Attorney Today

During a divorce, the property division process can sometimes bring out the worst in people, especially when they feel entitled to certain assets. If you have concerns about your spouse hiding or dissipating assets during divorce proceedings, the experienced Hillside, IL divorce lawyer at the Law Office of Vincent C. Machroli, P.C. can address these issues with you, and can advise you about taking legal action to protect your right to the equitable division of marital assets under Illinois law. Take the first step and call 708-449-7404 to schedule your no-charge legal consultation today.