A New York woman, referred to as “Sarita,” https://www.cnbc.com/2023/05/20/bitcoin-in-divorce-how-spouses-hide-assets-crypto-hunters-find-them.html suspected her spouse, who earned a substantial salary, was claiming to have far fewer assets than his income suggested. Her husband had converted marital funds into Bitcoin and stored them in a hidden digital wallet, believing they were untraceable. Sarita engaged a specialized forensic accountant who spent months on the case. The investigation successfully tracked the movement of money and ultimately uncovered 12 Bitcoin in the undisclosed wallet, which were valued at approximately $500,000 at the time of discovery.
The risk of being caught hiding assets, and the penalties that follow, are catastrophic. Hiding assets is not a clever financial maneuver; it’s fraud and perjury—a criminal act against the court. At our firm, we don’t just fight for a fair division; we specialize in dismantling financial deception to ensure you get what you truly deserve.
In Illinois, hiding assets typically falls into two main categories: dissipation of marital assets or fraudulent concealment. Both trigger serious legal consequences.
- Dissipation of Marital Assets
Dissipation refers to a spouse using marital property for their sole benefit for a purpose unrelated to the marriage when the marriage is undergoing an irretrievable breakdown. It might mean spending money so that your ex won’t get it. Maybe a punitive gambling vacation. The Illinois Supreme Court defined this as the “use of marital property for the sole benefit of one of the spouses for a purpose unrelated to the marriage…” (In re Marriage of O’Neill). https://law.justia.com/cases/illinois/supreme-court/1990/69102-7.html
If the court finds dissipation, it will compensate the non-dissipating spouse, often by awarding them a greater share of the remaining marital estate (In re Marriage of Tabassum and Younis), a concept supported by case law. https://caselaw.findlaw.com/court/il-court-of-appeals/1211163.html
You might lose both on the blackjack table and in the courtroom.
- The Strict Penalties for Concealment and Fraud
When an asset is intentionally hidden, the penalties are severe and can go far beyond a simple redistribution of property:
When an asset is intentionally hidden, the penalties are severe and can go far beyond a simple redistribution of property:
- You Lose It All: The judge may award 100% of the undisclosed asset to the honest spouse as a direct punishment for your deceit.
- The Case Can Be Reopened: Even after a final judgment, if fraud or misrepresentation is discovered, the court can vacate or reopen the settlement to litigate the assets again https://www.ilga.gov/documents/legislation/ilcs/documents/075000050k503.htm
- Pay Their Lawyer: The dishonest spouse can be ordered to pay all the attorney’s fees and court costs incurred by the other party to uncover the hidden property.
- Criminal Charges: Lying under oath in a financial affidavit or deposition constitutes perjury (a Class 3 felony) or contempt of court, which can lead to fines and jail time.
The Appellate Court case https://ilcourtsaudio.blob.core.windows.net/antilles-resources/resources/f6f98767-9019-4184-acbe-b9fb9a0063ef/Marriage%20of%20Brubaker%202022%20IL%20App%20(2d)%20200160.pdf of Marriage of Brubaker, 2022 IL App (2d) 200160, demonstrated the severe nature of this penalty. The court permitted a judgment to be reopened years after the divorce was final to address the fraudulent concealment of a major asset, sending a clear message that deliberate deception warrants judicial intervention even after the fact.
For a non-Illinois example of a penalty, consider the famous In re Marriage of Rossi case, where a California woman won $1.3 million in the lottery and filed for divorce 11 days later without disclosing the winnings https://www.theguardian.com/world/1999/nov/18/3. The judge awarded 100% of the entire lottery winnings to her ex-husband as a sanction for fraud.
The Money Trail: How Hidden Assets Are Found
Spouses get caught because they inevitably leave a paper trail. In today’s digital world, that trail is often wider and easier to track.
Common Hiding Tactics That Fail
No scheme is foolproof. Here are some common ways people try to hide assets (many of which are detailed in resources like those provided by Justia) https://www.justia.com/family/divorce/dividing-money-and-property/hidden-assets/#:~:text=Business%20Manipulation%3A%20For%20business%20owners,money%20personally%20after%20the%20divorce, and why the methods we employ easily uncover them:
| Failed Hiding Method | Why It Fails |
| Transferring to Third Parties | The funds must leave a bank account. Subpoenas to banks and third parties reveal the wire or check payment. |
| Delaying Income/Bonus | Reviewing corporate documents, employment contracts, and emails often reveals the plan to delay the payment until after the divorce. |
| Manipulating a Business | A forensic accountant exposes fictitious expenses, under-reported cash, and personal bills being paid with company funds. |
| Hiding Digital Assets (Crypto) | The fiat currency (dollars) used to buy the crypto must come from a known bank or credit card account, leaving a clear path for a crypto-expert to trace. |
| Overpaying the IRS | Tax returns show the excessive estimated tax payment, which is clear evidence of creating a future post-divorce refund. |
We don’t rely on trust; we rely on facts, evidence, and court-enforced discovery. We use a multi-step process to dismantle your spouse’s financial deception:
- Mandatory Discovery: KHK’s legal team uses the court’s power to demand every single document—tax returns, bank statements, credit card bills, and loan applications—for several years back.
- Subpoena Power: If your spouse fails to disclose, we bypass them and issue subpoenas directly to third parties—banks, investment firms, and employers—to obtain records.
- Forensic Accounting: In complex cases, we bring in specialized Forensic Accountants and crypto experts. These professionals use advanced methods to trace funds through multiple entities, including following the digital footprint of Bitcoin and other digital assets.
- Depositions Under Oath: We confront the dishonest spouse in a deposition where they must answer detailed questions under the penalty of perjury.
Attempting to hide assets creates a mountain of legal trouble and financial risk. Your spouse will spend thousands of dollars to conceal money only to face sanctions that award the entire amount to you, plus pay your legal bills.
If you suspect financial misconduct, do not wait. Contact us today. We have the legal tools and the financial expertise to find what’s missing and secure the equitable resolution you are entitled to.
