Mediation Blog » Hidden Assets

If I Did Something That May Hurt My Case, Should I Lie?

admin — Thu, 18 Mar 2010 12:00:57 +0000

Your credibility is the most important element of your case. Deceit is rampant in divorce cases, and judges have little patience for such behavior. If there is a weak point in your case, meet the problem head on. All people make mistakes, and you can describe an incident as a lapse of judgment under trying conditions. If you are sincere and convincing, it will damage your case less than lying would. For an article about what not to do during your divorce, click here.

The importance of truthfulness holds true when the issue is infidelity within the marriage. It is best to admit to obvious affairs and deal with the problem on the stand to take the punch out of your spouse’s argument about an affair. That’s not to say that complete confession during the negotiation phase is optimal. Certainly, each case is different, but telling the truth to a judge in a straight forward and brief fashion at a trial can be much less damaging than ignoring the scenario and waiting for it to be raised by your spouse’s attorney, or having your spouse parade a series of witnesses of photographs through the court after you have not been truthful about a new relationship.

Bud is an attorney who was on trial for divorce. He had been unhappy in his marriage to Janice for many years but had not had an affair. During the final months before separating, Bud fell in love with Samantha, a co–worker, and became sexually involved with her. He never told Janice about the relationship and his intent to marry his new partner, but he was pretty sure she suspected something since he was unwilling to consider counseling or reconciliation. At the trial, he readily admitted to being involved before Janice could accuse him, discussing his loneliness and the new happiness that Samantha breathed into his life. He depicted the new relationship as unfortunate (because it started before his marriage ended) but loving and positive, and expressed the importance to him that Janice not suffer needlessly for it. Despite the high degree of animosity between the couple, the judge believed Bud’s account and rendered the affair as inconsequential compared to the other issues in the divorce.

Once you’ve admitted the relationship, photographs or Valentine’s cards lose their significance as evidence against you. The judge probably doesn’t care much about them at all. However, if you lied, then the lie becomes a credibility issue that affects your entire case.

If you are tempted to lie at any point during your divorce remember that your spouse may have a photograph or document that proves your statement is untrue. You could then be in the unenviable position of attempting to retract testimony that is undercut by the contents of a document, photograph, videotape, or tape recording. Once a judge decides you’re lying about one issue, all of your testimony becomes suspect. As a consequence, you may be punished in the property settlement or alimony aspects of your case. Click here for an article about perjury in divorce cases.

Lying under oath is perjury. Perjury is a crime. Many judges refer perjury in divorce cases to the prosecutor’s office. Judges may also refer matters involving drugs, false tax returns, or other crimes. If these are issues in your case strongly consider settling with your spouse out of court rather than take the chance of facing criminal prosecution along with your divorce case.

If you are tempted to lie about a situation in your case, you speak with your lawyer in advance so that you can decide together the best way to handle it. No reputable lawyer will permit you to lie or will condone a suggestion to lie on the stand, but will assist you in a legal way to minimize any ill effects that you might experience because of the scenario that presents itself.

Excerpted from Your Divorce Advisor: A Lawyer and a Psychologist Guide You Through the Legal and Emotional Landscape of Divorce (Simon & Schuster/Fireside 2001). For more information: http://www.yourdivorceadvisor.com/.

For more information contact Peace Talks www.peace-talks.com

How do I Prepare for the Financial Part of the Trial?

admin — Tue, 16 Mar 2010 12:00:54 +0000

Once all of your documents are in order, the financial issues which are still in dispute should be fairly obvious. You can work with your attorney to organize the documents according to the issues which they represent. If you are not represented by an attorney, you will organize the documents yourself.

For example, if you are claiming your spouse hid money in an account, likely documents which would support that claim would be the bank or stock account records which reflect the money, deposit slips showing deposits into those accounts, pay stubs which show automatic deductions to that account, and perhaps loan documents which show that account as an asset. Those different documents together prove the same point.

Each of the points which you intend to cover should be organized in terms of importance. The most important points should be covered early in the trial. The presentation will also need to make sense chronologically. If you jump around too much in time, the court is likely to get confused.

Make an outline, or assist your attorney in making an outline, of the points that you intend to make in the trial. You will not be permitted to read directly from your outline during the trial, but the act of outlining what you plan to cover increases the likelihood that you will cover all of the crucial points. You may refer to your notes or documents during your testimony with permission of the court, but keep in mind that opposing counsel may also look at any document you use to refresh your memory during the trial. Click here for some terrific information on the financial aspect of divorce.

Also make an outline of what you anticipate your spouse’s case against you will cover. Be prepared to answer questions about those issues. For example, if your spouse has repeatedly accused you of over spending, assume that this will be one of his or her arguments in the case, and be prepared to justify your expenditures. Click here for an article on some of the caveats of mismanaging money within a marriage.

For more information contact Peace Talks www.peace-talks.com

More Places to Look for Hidden Assets

admin — Mon, 21 Dec 2009 12:00:42 +0000

Social Security

Social security records can be accessed through your local social security office. Social security is often stubborn about releasing records and honoring subpoenas, so if you need such records, get started on this project early!

Credit reports

Your spouse’s credit report is a great source of information. Oftentimes it will contain addresses given by your spouse, employment and wage information in addition to open or available credit, as well as credit-worthiness. You will need either a signed authorization from your spouse or a subpoena to get a copy of your spouse’s report, since this information is confidential. To obtain a copy if your spouse is uncooperative, you or your lawyer can file a motion requesting authorization, but you will need to prove to the court why it would be useful for your case. For example, if your spouse is claiming that he or she cannot refinance the house because of bad credit, then he or she can be required to prove that this claim is true by providing a copy of a credit report. Your spouse may have given another address as part of a credit application. This address will show up on the credit report.

Loan and credit applications

Most people present themselves in the most favorable light possible when applying for loans, mortgages, and credit cards. If you believe your spouse has not been truthful about his or her income, get a copy of a recent loan application and compare what your spouse now reports as earnings with the loan application. This information is typically provided with a statement that the information given on the loan is true and correct, and sometimes it’s even provided under oath, such as for a mortgage application. This information can be used to establish your spouse’s income at trial if he or she is not being honest about his or her earnings. It can also be used to challenge his or her credibility if the credit application states one amount, and the financial statement submitted by your spouse to the court states another amount.

Financial institutions typically keep copies of loan applications for several years. The more recent the loan application, the greater the likelihood that the institution from whom you are seeking information has a copy of the application. You will need a signed authorization from your spouse or a subpoena to get this information, as it is confidential.

The more informed you are, the less fearful you will be. There is a lot of free information at http://www.peace-talks.com/divorceinformation.php. Also be sure to visit the Peace Talks resource center at http://www.peace-talks.com/resources.php.

For more information contact Peace Talks www.peace-talks.com

Places to Look for Hidden Funds

admin — Thu, 17 Dec 2009 12:00:37 +0000

Bank and brokerage records

Banks and brokerage houses maintain records for several years. If statements mysteriously disappear from your records drawer, you can always get them from the bank or brokerage house. Oftentimes their records will go back for years on computerized record storage. There may be a charge for researching and copying these records, so ask in advance how much it will cost. If mysterious stock and bond (or other asset-type) statements arrive in the mail that you do not understand, photocopy them.

Tax returns

Copies of your tax returns should be available from your accountant, or you can get them directly from the IRS by sending a copy of IRS form 4506 with a check for $23.00 per tax return to the address listed on the form (where you send your request depends on your state of residence). You can also access the IRS online at: http://www.irs.ustreas.gov/prod/cover.html

Registrations and official records

The Secretary of State maintains records of corporations and partnership registrations. Professional associations keep track of all professional licenses, and court clerks’ offices keep a registry of lawsuits. Every car, boat, house trailer, and camper has a title and registration. In the case of a car, house trailer, or camper, the title is registered with the department of motor vehicles. Boats are registered with the Coast Guard.

Houses and condominiums are registered with the town clerk in the town hall in the city in which the property is located. The town clerk’s office, assessor, or tax collector maintains these deeds. You can request a certified copy of a deed at the recorder’s office. Sometimes they will honor these requests via mail. The copying fee is nominal.

Almost every kind of asset has some sort of ownership record. You can search each source directly, and the internet is also a useful resource. An example of a comprehensive internet site which permits you to search various record databases is but as the worldwide web grows, new sites become available every day.

Pension, profit sharing, and 401k and stock option records

Pension, profit sharing, 401k and stock option records can be accessed through the providing entity. Typically, this is an employer or brokerage firm. If you do not know who that entity is for your spouse, you can find out using interrogatories or a deposition, but in most cases, a simple request from your spouse’s attorney should suffice.

Make sure you are informed about how to build your case. There is a lot of free information at http://www.peace-talks.com/divorceinformation.php. Also be sure to visit the Peace Talks resource center at http://www.peace-talks.com/resources.php.

For more information contact Peace Talks www.peace-talks.com

Ethical Problems if it’s Your Hidden Income

admin — Mon, 14 Dec 2009 12:00:57 +0000

On the financial statement you submit to the court, you are required to make a full disclosure, under oath, about your income, assets, and liabilities. If you are untruthful, you take the risk of having your case re-opened for fraud. Domestic cases are fraught with lies, deceit and attempts to hide assets. If a judge perceives that you’ve engaged in any of these, plan on being punished for it. Occasionally a judge will refer a case to the prosecutor’s office to be prosecuted for perjury, in addition to appropriate financial sanctions in the divorce case. Hiding assets is tricky, and not worth the potential punishment on discovery.

Finding Your Spouse’s Hidden Assets

Irrespective of the risk, hiding assets is not an infrequent event. Fortunately, finding most hidden assets is reasonably easy. It’s just a matter of being thorough and persistent. Almost every source of income and asset has a paper trail, or some other evidence of its existence. Private investigators now have databases to search even off-shore bank accounts and stock holdings. You have access to a great deal of personal information about your spouse, so if you have the incentive and time to spend doing a little detective work on your own, you can save a bundle on private detective fees.

Income

All wages and income which have been paid by an employer are required to be reported to employees and the IRS via W-2 and 1099 forms. Therefore, the employer will have records of wage information, which will also appear on tax returns.

Sometimes people are paid “under the table” or “off the books”. This kind of wage money is harder to trace, because such practices are illegal, and hence secretive. Employers who practice this illegal bookkeeping will be unlikely to cooperate in requests to provide accurate wage information. Unless you think there is much money of this type involved, it may not be worth tracking down since it will be so difficult, and therefore costly, to prove.

Many clients claim that their spouse is not disclosing all of his or her income to the IRS, or to the court. One scenario is a self-employed spouse who does not declare all of the income to his or her business on a tax return. This scenario is frequent among waitresses, who receive large portions of income in tips. In these instances, the tax return will not tell the whole story, and you may need to search out hidden assets.

The first place to start is with your lifestyle. If you are going on lavish vacations, eating at expensive restaurants, and driving expensive cars, consider how much money these things cost. The $30,000.00 that your spouse is claiming as the income from the florist shop is not sufficient to support the lifestyle you are describing to your attorney. The more details you can put together about your lifestyle situation, the more helpful you can be to your attorney. How much does the car cost every month? How much did your last vacation cost? Or, at least how long were you gone and where did you go? Does your spouse keep cash around the house? Does there always seem to be money for what your spouse wants to do? These are all clues as to actual income, as opposed to what may be reflected on a tax return.

An even more obvious way is to look through your checkbook register. If your spouse is claiming $30,000.00 in income, but $60,000.00 goes through your checking account every year, that is the first and most obvious evidence. You may also take a peek in your safety deposit box, under mattresses, and in the sock drawer. Your spouse may even admit to you about extra cash, and brag about undeclared income. If your spouse does this, be sure to take notes! Educate yourself and be aware of your rights. There is a lot of free information at http://www.peace-talks.com/divorceinformation.php. Also be sure to visit the Peace Talks resource center at http://www.peace-talks.com/resources.php.

For more information contact Peace Talks www.peace-talks.com

Is there Really Hidden Income?

admin — Wed, 09 Dec 2009 12:00:56 +0000

Jeannette remained convinced that her husband had thousands of dollars stashed. She could not point to any illegal income or activity to confirm her suspicions. The couple had two children who were teenagers, a house mortgage, and car payments. Jeannette didn’t work outside of the home, and had not worked in over six years. Although it was unlikely that a police officer earning $50,000 per year had much money left over after paying for children’s expenses, a mortgage, two cars, and payroll taxes, she insisted on a full asset search. She hired an asset locator firm to search bank account and stock records both nationally and off shore. The total bill for the investigator alone totaled over $5000. The investigator found nothing that wasn’t already disclosed. Jeannette let her suspicions run away with her common sense, and it ended up costing her a great deal of money–money which would have been better spent on her children or her home.

Proceed with discovery in logical order. Start early enough to have time to do discovery step by step. Start with a subpoena or interrogatories. See if you uncover anything suspicious which is worth investigating further. If so, then take the next step to find hidden income or assets. Occasionally, some cases warrant a full-blown investigation but those cases are rare. On the other hand, if you skimp on your discovery, you may feel like you did not get a fair shake, and that is a decision you will be living with for the rest of your life.

Sometimes, your financial picture is more complicated than simply reviewing tax returns and bank records. Perhaps the most confusing of these more complicated issues is finding hidden income.

Avoid falling into unnecessary fear and anxiety by knowing as much as you can about how divorce works. For articles, plans and checklists see http://www.peace-talks.com/divorceinformation.php. Some terrific books are listed at http://www.peace-talks.com/books.php.

For more information contact Peace Talks www.peace-talks.com