Find Hidden Divorce Money From Your Tax Return

It's almost mind boggling how many spouses rely on their significant other to do the taxes. Most of them don't even look at them. They just want to know the bottom line and where to sign. Check your tax return. Do the numbers correspond to what you've earned, spent and saved? Do the 1099s seem to be in order? Interest and dividends are reported there, along with the names of the financial institutions. Make sure you know where your assets are invested and where the accounts are kept. I have seen a spouse pay significant income taxes, often when the payment greatly exceeds the actual income tax debt. After the divorce is over, then an amended return is filed along with a request for a refund of the over payment. In this way cash that would normally have been divided between the spouses was used for income tax payments, and the refund is not shared.

Another strategy used by those who manage property or a business, is to undervalue the property over time. What this does is gives the individual managing the asset the benefit of the lower value. This may include allowing rental property to remain vacant or in disrepair.

Another huge problem is with business owners deferring payments of accounts receivable until after the divorce is finalized. Then after the divorce, accounts are paid and the managing spouse gets the benefit of the cash, and also the increased value of the business now with current accounts.

One of the best places to identify possible undisclosed assets is your income tax return. This is a black and white account of income earnings and asset sales. The line by line format of the tax return describes the source of all income. Examples are interest on bank accounts (not to mention the existence of bank accounts), stock dividends, stock sales (gains or losses), and rental property income. The schedule page details of the tax returns are key to discoveries. Review these line by line with your accountant and legal representation. You can get a FREE report on hidden assets at Divorce Ammo.