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Most of the painful complications in divorce involve money. Handling a couple’s commingled finances is hard enough when a marriage isn’t in trouble, and the business of splitting them often results in confusion, resentment, and accusations.
Your ex-partner may claim you are hiding assets or wasting money to avoid paying spousal maintenance. How can you manage allegations like these?
How Spousal Maintenance Works in Illinois
In Illinois, a spouse can request maintenance temporarily during divorce proceedings. If the partners cannot agree, the judge will determine whether to order long-term spousal maintenance once the divorce is final.
During the divorce process, each partner must submit a financial affidavit to document their income, assets, and debts. In Cook County, filers must also provide two years’ worth of tax returns, as well as pay stubs showing their year-to-date earnings and deductions. See Cook County Cir. Ct. Rule 13.3.2.
Judges award maintenance after considering a number of factors set out in the law, including:
- The duration of the marriage
- The standard of living established during the marriage
- Each partner’s income, property, and financial obligations
- Each partner’s needs, as well as their “realistic present or future earning capacity”
- Whether the partner asking for maintenance lost earning capacity due to “devoting time to domestic duties or having forgone … opportunities due to the marriage”
- The time necessary for the partner seeking maintenance to acquire appropriate education, training, and employment
- Whether that partner is able to support themselves at all
See ILCS 5/504(a).
The law provides guidelines for calculating spousal maintenance based on the partners’ net annual income, although these do not apply to higher-income couples. The judge can also decide to deviate from the guidelines if the facts of the case make it appropriate.
A payor can generally request a reduction in maintenance payments if there has been a “substantial change in circumstances.” To determine whether to grant a reduction, the court will consider:
- Whether one of the partners has had a “change in the employment status”—and whether it has been made in good faith
- The payee’s reasonable efforts to become self-supporting
- Any impairment in the present or future earning capacity of either party (such as disability)
- The impact of tax consequences
- The duration of payments relative to the length of the marriage
- The distribution of property between the parties
- An increase or decrease in either party’s income or assets since the divorce
- Any other factor that the court considers “just and equitable”
See 750 ILCS 5/510(a-5).
Financial Misconduct in Illinois Marriage and Divorce
There can be no fair order of spousal maintenance if a partner deliberately mishandles financial information or assets. Divorces frequently involve allegations of:
Dissipation of Assets
A partner may waste the marital property out of sheer spite or carelessness, solely to keep it out of the hands of their soon-to-be ex. This is called dissipation of assets, and it can include:
- Spending money on new dates or affair partners
- Uncharacteristically large gifts, charitable donations, or gambling losses
- Big-ticket purchases with no benefit to the other partner, such as sports equipment or designer fashion
- Selling high-value or sentimental property (houses, instruments, etc.) without need, especially if they sell it under fair market value
Ongoing Concealment of Income and Assets
Ex-partners who plan to avoid support payments have numerous tactics to “deflate” the income and assets that they must report to the court. This can include:
- “Loans” or “sales” to straw partners, often relatives or friends. Their accomplice will return the assets as soon as possible
- Overpaying the IRS so that the money will be refunded several months afterward, once the divorce is complete
- Working under the table: accepting unreported cash payments
- Hiding income and assets in trusts or shell companies such as LLCs
Facing Allegations of Misconduct
In a high-conflict divorce, an ex-partner may allege that you have dissipated or concealed assets to avoid maintenance obligations. How can you manage this?
It’s crucial to work with a family law attorney not only on your filings but on all your major moves during a divorce. Your attorney can flag possible issues in your spending and asset transfers.
Some otherwise innocent purchases, such as a decision to invest in cosmetic surgery, might be viewed as dissipation during a divorce. Investments or business income changes can also open you up to allegations of dissipation or concealment.
To combat accusations like this, anticipate them. Keeping extensive documentation of all your major financial moves will serve you well. You should be able to show that any actions you took were in good faith and did not deplete the marital property.
A paying ex-partner may also charge that they should not owe maintenance because the payee has remarried or moved in with another partner. Maintenance payments should end on the date of the marriage or the beginning of cohabitation, and the payee must reimburse them for any payments received after that time. See 750 ILCS 5/510(c).
It’s best to talk to your attorney before moving in with a romantic partner or intermingling your lives. When a payor requests to end payments, courts look for evidence of a marriage-like relationship, which can include joint financial decisions and vacations together. Your ex-partner may even hire a PI to watch your movements and scan your social media.
Chicago Lawyers on Your Side
This is a painful and challenging time, and you must move carefully to avoid unjust outcomes. Talk to our experienced legal team today for strong, compassionate divorce counsel. Call us at 872-331-4144 to schedule your free first consultation at our Chicago or Northbrook offices.
