A Los Angeles accountant's techniques for finding hidden assets can be used to uncover stashed income in Georgia divorce cases. Often, one spouse will attempt to hide income in order to skew property division in his or her favor. Sometimes this type of fraud begins as a means of hiding money from the government and escalates when divorce is pending. In these cases, former spouses may be aware of money hidden in automobiles, home renovations and even the bogus hiring of family members. Fortunately, the Internal Revenue Service (IRS) has an 'innocent spouse" rule that can protect spouses who were not involved in such transactions.
Hidden assets are difficult for the IRS to spot but easy for a spouse to notice. For example, if a wife knows that her husband routinely spends $100,000 per year on entertainment -- information to which the IRS is not privy -- then a reported income of $150,000 is suspicious to the spouse but not to the IRS. Specialized lawyers and accountants have specific methods for uncovering hidden assets raised by these suspicions.
Hidden assets are most often stashed by small business owners, such as lawyers, doctors and restaurant proprietors. Some attempts to hide assets are unsophisticated and easy to prove, but others are more savvy in their accounting. Clues like luxury items or business supply expenses outpacing income can be helpful.
The Los Angeles accountant who specializes in finding hidden assets wrote a book called How They Stash the Cash in order to emphasize that spouses should act on their suspicions to avoid being short-changed in a divorce. Lawyers who specialize in divorce and property division may be able to help spouses recover hidden funds. Source: Bloomberg, 'Hunting for hidden cash in divorce proceedings." Ben Steverman, June 3, 2013.
Source: Bloomberg, "Hunting for Hidden Cash In Divorce Proceedings", Ben Steverman, June 03, 2013