Going through a divorce is hard. On top of having to stay mentally clear and stable, it is important to also look out for your own best interest. Many spouses have hidden assets that are undeclared. As a result, the amount of assets that are to be separated and divided between both spouses will be skewed in favor of the one who is being financially unfaithful.
If you believe that your spouse is dishonest about the amount of assets that he or she has tucked away for a rainy day, consult with a divorce lawyer to determine what techniques can be implemented to look for these assets.
Go Through All Pages of Income Tax Returns
Income tax returns can be the key to uncovering a wealth of information regarding any assets that may be hidden away. Income tax returns not only describe the amount of income that an individual has earned, but also provide insight in regards to the source of the income. Common sources include interests, dividends, gains from stocks and even rental income. Your divorce lawyer will scrutinize your spouse's income tax returns to look for:
Analyze Lifestyle Habits and Desires
Your divorce lawyer will consider the type and quality of lifestyle that your spouse is living. For example, does he or she drive a luxury, sports car? What type of clothing and designers do they normally prefer? If there is a discrepancy between your spouse's lifestyle and reported income, then chances are that they have a hidden asset tucked away somewhere else. At times, finding proof that hidden assets exist may help your case.
Your insights will be a lot of help in this area. Consider whether your spouse has a taste for extravagant, luxurious goods and determine whether the income that they claim that they are earning can support their habits. There is definitely something fishy going on if your spouse is reporting a minimum wage income but affording luxury brand items, designer clothes, sports cars and fine dining.
Look at Cash Flow Analysis in Businesses
While this may not necessarily be useful for all couples, follow the money if your spouse owns a business as a lot of extra earnings can be siphoned out from their business right under your nose. If your spouse is single-handedly responsible for all of the financial tasks in his or her company, and does not ask for external help, he or she has a lot of control as to where the money goes. Your spouse can easily underreport earnings or write off significant amounts of money.
Dig Up Offshore Accounts
Offshore accounts are not easy to find, partially because most offshore accounts are subject to different privacy laws that may make it virtually impossible for you to recover any information. This is when you may need help from your divorce lawyer the most. Your divorce lawyer will want to take a look at travel locations that your spouse has frequented to determine whether offshore accounts may be located. They may then be able to find probable cause to determine that these accounts do in fact exist.
Uncover the Electronic Trail
Last but not least, do not undermine the wonders of technology. Smartphones are a great way for uncovering hidden assets. Look for text message or email correspondence that may indicate that there is a hidden financial life. For example, emails from Paypal may provide insight as to whether large sums of money are being stashed away elsewhere for a rainy day. Following the electronic trail has become an increasingly common tactic with 9 out of 10 lawyers claiming that it has effectively helped them uncover the information that they need.
Don't let emotions control you during the divorce. Play it safe and hire a divorce lawyer to determine whether your spouse may have been hiding assets from you that are unreported. By uncovering these hidden assets, you will also be entitled to it when settling the divorce.
Share15 January 2015
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