< previous page

Note that answers given in this section cannot take the place of independent, legal or financial advice. Please read our disclaimer.

"I'm worried that my spouse will try to hide assets from me if I ask for a divorce. He owns a business and never tells me anything about it or allows me to see his income tax returns. How can I be sure I get a fair share of his business and other assets? And how can I prevent him from hiding assets -- or find them if they're already hidden?"

Your spouse may try to hide assets, but most people are not very good at it: they usually leave trails that can be followed. There are two steps for you to take:

• Firstly, you can do some pre-divorce planning of your own. Talk to a Certified Divorce Planner or someone trained in divorce financial matters. They will work with you in getting ready for the process and assist you in getting the right attorney involved as well.
• Secondly, once you file for a divorce, a good financial expert with divorce experience will be able to work closely with the attorney to construct proper discovery to obtain the documents needed to start to build your case, as well as assist in depositions and interpret financial records that are produced.

It is not uncommon for owners of closely held businesses to get a disease called "RAIDS" (Recently Acquired Income Deficiency Syndrome). Information will come from your discovery process and the valuators' site visit and interview with management or through deposition. You will want to obtain credit reports on the spouse, his bank statements, canceled checks (front and back), deposit slip details, debit and credit memos, check registers, signature cards, monthly credit card statements, applications for credit cards or checking accounts, loan applications, etc.

With respect to the business, you will want to obtain items such as: detailed general ledgers; cash disbursement journals; payroll records; copies of contracts for services; lease agreements; bank statements; deposit slips; credit card statements; loan files; any brokerage statements; telephone records; etc. Also, obtaining the individual's gift tax returns may be helpful in identifying assets that have been transferred. Once you obtain this information, a financial expert can use various techniques to ascertain the property-owning spouse's true economic income and the true worth of the company. The professional will look for your husband's perks, compare the changes in his net worth, and pay a close attention to his lifestyle in the search for hidden assets and the development of his true economic income.

Though he may have never told you anything directly before, the way you live will tell a lot. Plus, you will learn a lot by the time discovery is finished. Don't worry, stay focused, and get good qualified professionals as part of your team.

About the author of this Illinois Divorce FAQ:

Since 1980, Bruce Richman (CPA/ABV, CVA, CDFA™) has been actively involved in valuations, mergers and acquisitions and other financial and tax consulting matters. He currently works with UHY Advisors in Chicago. In his current position, Mr. Richman is responsible for various valuation projects and consulting services in the United States and, for U.S. clients, internationally. He can be reached at (312) 416-4141. View his Divorce Magazine profile.