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Divorce and Money - When Your Spouse Cashes Out Their Retirement Before Filing for Divorce

Posted on in Divorce

Illinois divorce lawyersWhile most spouses embark on their divorce with no malicious intent, there are others who attempt to “get even” before they have even told their spouse that they want to separate. Some do this by running up debt, taking out new lines of credit under their spouse’s name, and intentionally dissipating their marital assets. Still, there are some who cash out an investment account, such as their pension plan or retirement account, and then spend or hide it to keep it from being added to the marital estate. Learn how to deal with this challenge in your Illinois divorce, and discover how the assistance of a seasoned divorce attorney can improve the final outcome of your case. 

Tracking Down the Missing Money

Most partners who remove money from their pension or retirement account to avoid having it added in the divorce will allow a great deal of time to lapse before divulging their desire to divorce. The reason for this is simple: by waiting, they hinder your ability to track down the missing money. However, it may still be possible to determine whether they spent the money or are simply trying to hide it. In most cases, there is a paper trail or large and frivolous purchases. Financial experts and a seasoned attorney can help you in this step by providing you with support, assistance, and valuable knowledge and resources. 

When the Assets Have Been Hidden

More often than not, sneaky spouses hide the money they are trying to keep out of the marital estate. It may be tied up in an offshore account, or it could be sunk into an asset that is difficult to sell. Thankfully, it may still be possible to recover these assets. At the very least, it may be possible to obtain a higher amount in your divorce settlement because of the “missing” money. Your attorney can advise you further on your options. 

When Assets Have Been Spent

Spouses who spend the money rather than hide it are often malicious in their intent, which is why it is so critical for victimized spouses to obtain aggressive legal counsel. Here, the money cannot be recovered. Instead, the disadvantaged party must show when and how (to the best of their ability) that their spouse intentionally depleted their marital assets. They must also fight for a larger portion of their divorce settlement, and they are encouraged to prepare for serious financial challenges if the retirement account was one of their marriage’s more valuable assets. 

Obtain Aggressive Legal Representation for Your Case

At Davi Law Group, LLC, we make your financial future and stability our top priority. Seasoned and aggressive litigators, our DuPage County divorce lawyers pursue the most favorable outcome possible in every case. Ask how we can assist with your Illinois divorce case by first scheduling a personalized and confidential consultation. Call 630-580-6373 today. 

Source:

https://www.marketwatch.com/story/my-husband-cashed-out-his-retirement-and-after-36-years-filed-for-divorce-2018-04-27

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