In general, investigators who work on divorce cases or the lawyers who handle divorces will need certain documentation prior to starting an investigation into a person’s hidden assets.  This documentation can include things such as the financial disclosures and tax returns of the parties.  Your Los Angeles family law lawyer  can further advise you regarding all of the pertinent documentation that may be needed for his or her investigation.

Standard divorce proceedings generally require the divorcing couple to release copies of their assets and liabilities. Such disclosures act as the starting point in any financial investigation to find assets that have been excluded (or hidden) from the marital estate.  The information that is unveiled in these disclosures can either be simple (meaning that nothing was hidden) or it can be the basis for a more sophisticated analysis and comparison.

Further, with respect to tax returns, an individual’s or a couple’s tax returns may be inadequate representations of the person or couple’s actual income or economic worth.  However, tax returns that demonstrate significant income will raise the odds that a claim of hidden assets might be justified.  Still, tax returns that show little to no income should prompt the question, “If assets are hidden, where did they come from in the first place?”

Tax returns provide authoritative documentation regarding sources of income.  For instance, interest income is reported to the Internal Revenue Service, and accordingly, the taxpayer will report those amounts on his or her tax return.  If there is interest income on the tax return, yet there is no asset disclosed that would generate such interest income, the foundation for an inquiry is laid.   If you need a Los Angeles family law lawyer, please call DA&D Law at (800) 257-6666 for a free consultation.