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Is your spouse hiding money in a divorce?

It is that time of year when people are either filing their income tax forms or procrastinating. With April 15 getting closer by the day, a story we read recently about an accountant and his wife makes for food for thought.

According to a news source, because the CPA was preparing for a divorce, he overpaid the IRS hundreds of thousands of dollars in a scheme to hide income from his wife.

A financial planner who had the accountant’s wife as a client said that man owed about $40,000 in taxes, but overpaid the federal tax collecting agency by about a factor of 10 and then just let the money sit there.

"He was parking the money with the IRS," the planner said. "His theory was that when he got divorced, he'd be single, he'd file his back taxes and get the money out. We caught him and did the back tax returns, so it was about $200,000 in tax refunds for both."

There are a number of other money-stashing divorce schemes, including spouses who put money into secret bank and investment accounts, as well as those who funnel cash into what are essentially shell companies.

Other schemes include:

  • A woman who socked away $30,000 by taking out cash each time she bought groceries
  • A man who bought his wife and mistress matching gifts (including furs) so that only one transaction would show up on his credit card

If you believe your spouse is hiding assets in preparation for a divorce, contact a Lake Charles attorney experienced in ensuring that financial disclosures are complete and property division agreements are fair.

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