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Ways to deflate income

If a spouse is self-employed, it is not so difficult to “cook the books” and artificially deflate income. As his own boss, he can take measures to draw less income himself and make it appear as though his business is not doing well. If he works in a small company, his boss may assist him by saying that his hours have been cut.

A husband working in a salaried job may also use several methods to decrease his take-home pay such as increasing retirement fund contributions or not submitting expense reimbursement sheets. He can overpay on income tax too, knowing he will get it back, or ask for any bonuses to be withheld until after the divorce.

Locating hidden assets

The first step in dividing assets during a divorce is to create a complete financial picture of all the assets owned by each spouse. This “discovery phase” may involve issuing subpoenas for employment records, bank statements etc. if a wife thinks a husband is being dishonest.

Uncovering hidden assets is easier today due to technological advancements.  The days of manually searching through bank statements and records are long gone, and advanced software can pick up anomalies. However, not all individuals, including divorce attorneys are aware of high tech strategies or comfortable with using them.

If a husband is reluctant to produce information, a deposition is a good way to get information. If he lies under oath during a deposition he will be charged with perjury.  Along with a competent lawyer, licensed private investigators can help to discretely gather information about hidden assets being withheld.

These private investigators have access to many databases and can retrieve any number of useful documents, securing valuable information in legal ways.  Additionally, a private investigator may use surveillance on the husband to establish proof of wrongdoing. Cross referencing names, locations, and other information to find patterns and possible places where assets are hidden is also part of the job. Most licensed private investigators use a combination of methods to provide a very comprehensive report. They may even provide court testimony if necessary.

Typically, a wife should wait to depose a husband until all the necessary information has been gathered.  Once he is faced with incontrovertible proof, he has little chance of getting away with hiding assets and a fair settlement can be obtained.