In a Connecticut divorce, spouses are required to complete a sworn statement of their income, assets, debts and liabilities known as a Financial Affidavit.
But sometimes the Financial Affidavit seems a bit “light.”
Here are a few places to look when attempting to uncover hidden assets:
Tax returns – Most people are uneasy about misleading the IRS for fear of penalties, fines and even prison. Standard discovery in Connecticut requires the production of tax returns for the last 3 years. The better practice is to request the last 5 years. Be attentive to inconsistencies in income, the existence of trusts or real estate interests.
Bank accounts – Checking accounts may contain a paper trail leading to large purchases and saving accounts may show substantial deposits and withdrawals. Bank accounts for children may be opened under the guise of a custodial account when the true purpose is to hide assets.
Brokerage statements – These statements are useful to determine whether the money derived from a sale of securities is accounted for in bank statements, on tax returns and reflected on the Financial Affidavit.
Expense accounts – If an employer grants an employee a lot of latitude then these accounts may reveal debits or deposits, which exceed legitimate business expenses.
It may be also be necessary to retain the services of financial professionals such as forensic accountants if money seems to be missing or business valuators if the spouse has an ownership interest in a business.
Please contact me of you have questions about hidden assets in a Connecticut divorce.