When a marriage is ending, you might see changes in how money is handled before anyone files for divorce. You could notice strange transfers, missing statements, unexplained withdrawals, or money moving between accounts you did not know about. A single odd transaction does not always mean your spouse is hiding assets, but a pattern is worth looking into.
Illinois divorce law requires the court to find, classify, value, and divide marital property, and moving money does not take it out of this process. If you think assets are being moved before a divorce in Chicago, we can help you figure out what has changed, keep important financial records safe, and decide if court action is needed.
Moving Money Does Not Automatically Make It Separate Property
Illinois law generally treats property acquired by either spouse during the marriage as marital property unless it falls within one of the statutory exceptions. Under 750 ILCS 5/503(a), marital property generally includes property and debts acquired by either spouse after the marriage, subject to exceptions for categories such as certain gifts, inheritances, property acquired before marriage, and property excluded by a valid agreement.
So, moving marital funds from a joint account to an account in only one spouse’s name does not automatically make that money separate property.
The name on an account can be important, but it does not settle the whole question of how property is classified. We consider when the property was acquired, where it came from, what happened to it, and if any legal exceptions apply.
Watch For Financial Changes That Do Not Fit The Normal Pattern
It is normal for financial activity to change sometimes. A spouse might pay taxes, make a big household purchase, move money to get a better interest rate, or change investment accounts for good reasons.
We are mainly concerned about unexplained activity that does not fit the family’s usual financial habits.
Examples can include large cash withdrawals, transfers to unfamiliar accounts, unusual payments to relatives or friends, sudden cryptocurrency purchases, unexplained business expenses, new safe-deposit boxes, large over payments to creditors, or assets transferred for substantially less than their apparent value.
Changes involving a family business can also be important to watch. Income might suddenly drop, payments owed to the business could be delayed, expenses might go up, or money could move between business and personal accounts.
None of these facts alone proves wrongdoing. We look at the overall financial history and whether there is a reasonable explanation.
Dissipation Can Affect Property Division
Illinois does not automatically divide marital property 50-50. Under 750 ILCS 5/503(d), the court divides marital property in “just proportions” after considering statutory factors. One of those factors is the dissipation by each party of marital property.
Dissipation generally concerns the use of marital property for a purpose unrelated to the marriage when the marriage is undergoing an irretrievable breakdown. The statute also establishes procedural requirements and time restrictions for asserting a dissipation claim.
This distinction matters. Spending marital money is not automatically dissipation. Families continue paying mortgages, groceries, taxes, medical bills, business expenses, and other legitimate costs while a marriage is ending.
If money was instead diverted for purposes unrelated to the marriage during the relevant period, we can evaluate whether a dissipation claim should be raised and what records are needed to support it.
Missing Financial Records Can Be An Early Warning
Sometimes the first sign of a problem is not missing money. It is missing information. Bank statements may stop arriving at the house. Investment statements may switch to electronic delivery. You may lose access to a shared financial dashboard or discover that an account you regularly viewed is no longer visible.
If divorce appears likely, preserve copies of financial records that you can lawfully access. Useful records may include tax returns, bank and investment statements, retirement account statements, mortgage records, credit card statements, loan documents, insurance records, business records, and documents concerning significant purchases. Do not destroy, alter, secretly take property that does not belong to you, or attempt to break into protected accounts. There are lawful ways to obtain financial information during a divorce.
Illinois Courts Can Restrict Transfers During A Divorce
When there is evidence that property may be concealed or transferred, Illinois law provides potential remedies. Under 750 ILCS 5/501(a)(2), a party may seek a temporary restraining order or preliminary injunction supported by a factual basis. Among other relief, the court may restrain a person from transferring, encumbering, concealing, or otherwise disposing of property, subject to statutory provisions concerning ordinary business activities and necessities of life.
This can be important when there is a genuine risk that significant assets will disappear before property issues are resolved.
We do not assume emergency court action is necessary whenever money moves. We examine the evidence first and determine whether the circumstances justify asking the court to intervene.
Financial Disclosures Can Reveal Inconsistencies
Illinois divorce proceedings require significant financial disclosure. Section 750 ILCS 5/501 requires the statewide financial affidavit in proceedings involving certain temporary financial relief and requires supporting documentation that includes tax returns, pay stubs, and banking statements. The statute also provides for significant penalties and sanctions, including costs and attorney’s fees, when a party intentionally or recklessly submits an inaccurate or misleading financial affidavit.
Discovery can provide additional ways to obtain records and investigate discrepancies.
We can compare sworn financial information with bank statements, tax documents, business records, investment statements, and other evidence. A transfer that initially appears difficult to trace may leave a substantial documentary trail.
What You Should Do If You Suspect Assets Are Moving
Start with information rather than confrontation. Make a record of what you have observed and preserve financial documents you already possess or can lawfully obtain. Write down unfamiliar account names, transfers, changes in income, unusual purchases, and significant transactions.
Avoid accusing your spouse publicly, taking money in retaliation, or attempting to conceal assets yourself. Those actions can make an already difficult financial case more complicated. The sooner we understand the marital estate as it existed before the unusual activity began, the easier it may be to identify meaningful changes.
Frequently Asked Questions About Moving Assets Before An Illinois Divorce
Can My Spouse Empty A Joint Bank Account Before Filing For Divorce?
The fact that a spouse can access a joint account does not necessarily determine how withdrawn money will be treated during divorce. Funds acquired during the marriage may remain marital property under 750 ILCS 5/503 even after they are transferred elsewhere.
If substantial funds suddenly disappear, preserve statements showing the balance before and after the withdrawal. We can examine where the money went, why it was transferred, and whether the transaction should affect the eventual property allocation.
What Is Considered Dissipation Of Marital Assets In Illinois?
Dissipation generally involves marital property being used for a purpose unrelated to the marriage while the marriage is undergoing an irretrievable breakdown. Illinois law specifically identifies dissipation as a factor in allocating marital property under 750 ILCS 5/503(d) and establishes procedural requirements for raising the issue.
Not every unusual expenditure qualifies. Ordinary living expenses and legitimate marital expenditures must be distinguished from spending that may constitute dissipation. We evaluate the timing, amount, purpose, and documentation surrounding the transaction.
What If My Spouse Transfers Money To A Relative?
A transfer to a parent, sibling, friend, or other person can deserve closer examination when there is no clear legitimate reason for it. We may look at whether the transaction was genuinely repayment of a debt, a legitimate gift, payment for services, or an attempt to place money outside the apparent marital estate. Bank records and other financial documents can help establish what occurred. Simply moving money to someone else does not necessarily prevent the divorce court from considering the transaction.
Should I Move Money Before My Spouse Does?
Taking retaliatory financial action can create additional problems. If you are concerned that marital funds are at risk, preserve the available evidence and obtain legal advice before making significant transfers.
Illinois courts have tools for addressing property during divorce, including temporary relief under 750 ILCS 5/501 and consideration of dissipation when allocating marital property under 750 ILCS 5/503. We can help determine which response fits the actual circumstances.
Speak With Our Chicago Divorce Lawyer About Suspected Asset Transfers
If you have noticed unusual transfers, disappearing account balances, unexplained withdrawals, or other financial changes before divorce, getting an accurate picture of the marital estate can be important. Michael C. Craven helps clients determine what property exists, examine suspicious transactions, and address financial issues under Illinois divorce law.
Michael C. Craven represents clients throughout the City of Chicago, Illinois. Contact our Chicago divorce attorney today by calling (312) 621-5234 to schedule a free consultation.
