Hidden Divorce Assets

This checklist was adapted from one created by a Certified Financial Planner in San Diego, California. It includes common ways in which a spouse may undervalue or disguise marital assets. Be advised, however, that you may have difficulty finding some items or getting the proof you need to show they exist. As mentioned, a forensic accountant, formal discovery procedures, or both may help.

• Collusion with an employer to delay bonuses, stock options, or raises until after the divorce. You might find this information by taking the deposition of your spouse's boss or payroll supervisor, but more likely you'll need a forensic accountant.

• Salary paid to a nonexistent employee. The checks will be voided after divorce. Again, you might find this information by taking the deposition of your spouse's boss or payroll supervisor, but you'll probably need a forensic accountant.

• Money paid from the business to someone close-such as a father, mother, girlfriend, or boyfriend-for services that were in fact never rendered. The money will no doubt be given back to your spouse after the divorce is final.

• A custodial account set up in the name of a child, using the child's Social Security number.

• Delay in signing long-term business contracts until after the divorce. Although this may seem like smart planning, if the intent is to lower the value of the business, it is considered hiding assets.

• Skimming cash from a business.

• Antiques, artwork, hobby equipment, gun collections, and tools that are overlooked or undervalued. Look for lush furnishings, paintings, or collector-level carpets at the office, reflecting income that is unreported on tax returns and financial statements. Lifestyle costs will exceed income, so document any of the cash expenses you know your spouse has incurred.

• Debt repayment to a friend for a phony debt.

• Expenses paid for a girlfriend or boyfriend such as gifts, travel, rent, or tuition for college or special classes.

• Cash kept in the form of traveler's checks and money orders. You may be able to find these by tracing bank account deposits and withdrawals.