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Full transcript by James Nolletti below.
Here are many ways to hide assets during divorce. Dishonesty and greed know no limits and strategies to hide assets can be as varied as the personalities of the individuals involved. Some folks simply refuse or forget to disclose bank accounts held in their name, some of which may be in other states.
Some set up offshore accounts, or foreign trusts. Cash can be used to purchase art, coins, or other collectibles and the other spouse may be completely unaware of the existence of these valuable items.
Other give third parties money to hold for their benefit or payback phony loans or debts. Business owners can pay salaries to non-existent employees and later void the checks or cook the books to show losses that never happened.
Some falsify documents, others try to defer income, and if someone works at a cash-based business, there may well be undeclared cash from under the table work.
Many things can be done to ferret out these assets and income. For example, income tax returns are the first place to look. They provide a road map to the discovery of income earning assets and asset sales, and they also describe sources of income in foreign bank accounts.
Scrutiny of income tax returns could lead to audit trails to be traced by forensic accountants. Discovery demands, interrogatories, and depositions can provide critical information from things like bank and credit card statements.
Court orders can be obtained to require a party to execute an asset search authorization for undisclosed assets held in his or her name.
Lifestyle, or spending analysis, can be conducted by a forensic accountant. If the parties were living well beyond their reported means, but somehow not incurring any debt, then income and assets are likely being unreported.
Discovery subpoenas and non-party depositions can also be conducted. Forensic examinations are designed to follow the money.
