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Self-Employed Spouse Hiding Money in a Divorce?

A question our clients ask us quite often is: How do I determine my spouse’s (or ex-spouse) true income since they are self-employed, or a contract worker or work for tips?

David Cantor put together this video explaining how a self-employed spouse might hide money and what you can do about it:

When working with spouses who have their income on standard W2 forms it is pretty straight forward. Self-employed spouses can hide their income within business expenses thereby lowering their burden for Spousal Maintenance and/or Child Support.

One thing you can do is subpoena their records, bank accounts, credit card statements. You may want to get a forensic accountant involved to look at the record keeping of the spouse. They may find out that the spouse’s consulting business is paying for cars, country club memberships, meals, etc. This is all income that can be written off as business expenses but should also be figured in when determining spousal maintenance or child support payments in a divorce.

Another route that can be taken would be to hire a Private Investigator to look into the person. As an example, they might be able to go on Facebook and they may find that the person is taking lavish vacations, another sign that they might be hiding money in a divorce.

If you feel like you have a spouse who is hiding income and would like to speak with an attorney, please call us today at (602) 254-8880. If you would like to send us an email through our confidential form, click here.

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