The problem of hidden assets most commonly arises where one party is self-employed or owns their own small business. The self-employed person or business owner will often intentionally under-report income not only to the other spouse but also government agencies, such as the IRS. In such instances the self-employed person or business owners reported profit and loss statements and tax returns will not give an accurate reflection of their earnings. Likewise, the self-employed person or business owner will often attempt to obtain a business valuation that is not complete or accurate.
Any inaccuracy in valuing a business can lead to an unfair outcome in every other financial aspect of the divorce, including division of assets, spousal and child support. Working with forensic accountants and business appraisers, Michael MacDonald Esq. will subpoena banking records and carefully review all business records to determine the actual income and assets of the parties.