New York, NY asked in Divorce and Family Law for Illinois

Q: In Illinois, an ex-spouse is hiding money by paying their new partner, who works for their business. Is this legal?

Ex-spouse owns a business and is claiming that their business is not doing well and that yearly "true-up" payments need to be reduced. One of the ways they are hiding money is by paying their new partner, who works for their business. By paying their new partner very very large sums of money, they are able to claim the business does not make as much as it does. Thus they can claim they don't owe their ex-spouse any money for the yearly "true-up". Is this legal?

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1 Lawyer Answer
Daniel J. Kollias
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Answered
  • Winfield, IL
  • Licensed in Illinois

A: Is the "new partner" a business partner or a domestic partner? Assuming the question refers to a new domestic partner, the answer will depend on several factors, including whether the new partner is actually working for the business and whether the amount being paid to the new partner is what an employer would have to pay someone else to do similar work.

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