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How tax returns reveal financial secrets

During divorces that take place in California or any other state, it is possible that a spouse could try to hide assets. This could be done to keep them from being divided in a divorce settlement. It is also possible that an individual is looking to reduce the amount of spousal or child support that he or she would need to pay. Those who suspect that a spouse is hiding assets should look at that person's tax return.

This may provide evidence of secret accounts or other schemes intended to downplay his or her true financial situation. For instance, a Schedule D will show any capital gains or losses from the past year while a Schedule B will list any dividends earned. If a spouse owns a business, he or she may try to shift money to that company or obscure what the money was used for.

Individuals who see a change in their spouses' spending habits should investigate the reason for these differences. If money is being transferred to multiple accounts, that may also be a clue that something is amiss. Ideally, married couples will attend a financial review session at least once a year. This class should be performed by a CPA who understands what these accounts are and how they can be used.

During a divorce, property will be typically be divided in an equitable manner. The terms of such a split may be determined by a prenuptial agreement or another arrangement a couple has reached. By finding hidden assets, an individual may be able to obtain the financial and other resources needed to maintain a reasonable lifestyle after a divorce is finalized. An attorney may be able to help seek out these assets in a timely manner.

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Law Offices of Catherine A. Schwartz
6877 Magnolia Avenue
Riverside, CA 92506

Phone: 951-335-0510
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