Hiding money in a divorce is not just wrong – it’s illegal. If you believe your spouse is hiding money in your Alabama divorce case, here are some tips you can follow to uncover the truth. In many cases, one spouse alone is responsible for managing the money and paying the bills. Often, the other spouse has very little idea of the total assets and debts. In a divorce, this spouse can be at a disadvantage financially. After all, it’s easy to hide something if no one knows it exists. That is why anyone considering divorce should take stock of all assets and debts immediately to help avoid the issue of hidden assets.
Step 1. Retrieve records, paperwork, and statements.
Retrieve your tax reports, bank statements, credit card statements, retirement statements, and loan statements for the last three years. If you or your spouse owns a business, get the business tax reports and financial filings as well. The IRS allows you to access prior tax returns easily. Often you can view and print bank statements, credit card statements, and loan statements online. If you cannot, simply call the institution and ask them to send you the statements. They may tell you they charge a small research fee, however if you plead your case, they sometimes will provide these statements free of charge.
Step 2. Analyze all statements thoroughly.
This is the tedious part! Grab a notebook, a highlighter, and a pen. Begin with any loan statements. Search for any unusual or suspicious withdrawals. If you find any, highlight them. Then, find the most recent statement and write down the balance. Next move on to your credit card statements and do the same. Finally, review your bank statements. Look for unusual cash withdrawals or large expenditures. Also keep an eye out for recurring charges that do not look familiar. If you are unsure about a charge, often a quick search on Google will help you identify the vendor. Highlight any unusual purchases or withdrawals, and again make note of your balances. Finally, review your tax returns. Unless your spouse is hiding money from the IRS as well, these should indicate income. If you are familiar with the business, you can analyze the tax returns. However, you may want to hire an accountant as these can be technical and difficult to understand.
Step 3. Hire a forensic accountant, if necessary.
A forensic accountant investigates accounts and financial records in order to determine if they are accurate or if they show evidence of deception. A forensic accountant is fairly expensive, and should be reserved for cases involving significant assets. In such cases, however, a forensic accountant can be invaluable! A forensic accountant can sniff out signs of fraud, such as overpaying creditors or creating fake debt. If your case involves a business or sizeable assets, a forensic accountant can ensure those assets are fairly valued and that you, therefore, receive what you deserve. A forensic accountant can also testify in court to these facts and, given their background, their testimony carries great weight.
After you have arranged and analyzed your financial records, an experienced Alabama divorce attorney can help you determine if you need a forensic accountant on your case. At the Zwiebel Law Firm, LLC, we will work diligently to ensure that you receive a fair divorce settlement. Contact us today at (205)623-1001.