Do I Have to Disclose Any Gifts or Transfers to My Child During a Divorce?

Right before a divorce is filed, spouses are usually in a hurry to try and protect their assets from a possible distribution at the time of a divorce. Sometimes this is done clearly in a bad-faith manner, such as gifts or transfers of money to a sister or girlfriend’s account. However, other times, the parties are not aware that certain transfers or gifts, such as the transfer of an account to a child either of or outside of the marriage are problematic.

Gifts or Transfers of Funds to a Child and Dissipation

Transfers to Children of the Marriage

Were the Funds a Marital Asset?

If you are concerned about a certain savings account that was being held for the benefit of your child but was not under the child’s name, seek trusted legal advice first. Speaking to an experienced divorce attorney first will about the best way to preserve these funds from being distributed at the divorce. For one, your spouse may agree to leave the funds to the children. Secondly, you may be better off using these funds to pay off your debts, which will free up money to re-fund the savings account. Before you actually transfer these accounts, it is important to be fully advised of the consequences. If you have already transferred or gifted accounts to your children, it is important to disclose it in Court than to hide it and face possible sanctions.

THIS ARTICLE WAS PREVIOUSLY PUBLISHED AT: https://illinoislawforyou.com/property-division/disclose-gifts-or-transfers-to-my-child-during-a-divorce/

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