Identifying financial discrepancies in a divorce

Money often plays a central role in many a marital dispute. In some situations, it may even contribute to the irrevocable breakdown of a marriage. A spouse experiencing this should pay close attention to their partner’s actions, especially if they suspect some assets are being hidden.

Today’s electronic world may make it easier for some people to move money around without their spouse knowing. This makes it important to thoroughly search all records before finalizing a divorce agreement.

Ways a spouse may find hidden assets

One place Forbes recommends spouses may look to identify hidden assets are recent mortgage documents, whether from a new home purchase or a refinance. Any loan approval would require full disclosure of the couple’s financial matters and may offer useful clues to finding money or other resources.

Reviewing all schedules in recent tax returns may provide insight to losses or profits from capital gains or a business, dividends or interest received or other income not openly shared. When searching for potentially hidden assets, all deductions claimed on tax returns should be closely monitored.

Strategies employed to hide assets

Some spouses transfer money to other parties when hiding assets, but they may also assert that the asset has been lost or stolen. They may even refuse to admit the existence of a particular asset.

The role of a forensic accountant

Depending on the circumstances, a forensic accountant may offer an opportunity to find hidden assets. The Forensic CPA Society explains that these professionals bring together accounting expertise with investigative know-how. They may aid in valuing a business as well as identifying hidden money.