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.

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 

(C) 2008  Peace Talks Mediation Services, Inc.

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.

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 

(C) 2008  Peace Talks Mediation Services, Inc.

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.

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 

(C) 2008  Peace Talks Mediation Services, Inc.

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.

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 

(C) 2008  Peace Talks Mediation Services, Inc.