Smart ways to find hidden business assets during a divorce

Unfortunately, there are many potential ways a Colorado business owner can hide their company’s income. However, there are also several strategies that someone can use to find these hidden money sources. If you’re trying to find hidden money in a divorce, these strategies might be worth utilizing.

Costs and revenues that don’t make sense

When a company owner is trying to hide income, they might artificially lower their company’s revenue. However, one crucial mistake that these companies make is forgetting to also lower their expenses. Sometimes, companies reporting false numbers will keep costs high to qualify for certain tax breaks.

Look at third-party records

There are many ways for a company to store and move around money. If a company’s financial statements show no signs of hidden money, it could be time to look at third-party accounts. These records, which often include bank and credit card statements, can give you a much clearer picture of if someone is trying to hide money.

Check out a company’s billing statements

If the company you’re looking into is in the service industry, you might uncover hidden income by looking at billing records. In most cases, these companies must send out billing records to their customers or patients. These documents should provide accurate information about a company’s revenues and expenses.

A company making lots of sudden improvements

When dealing with property division, sudden capital improvements are often signs that someone is hiding money. If a company is reporting less revenue than normal, it doesn’t make sense for this business to spend money on improvements.

As you can see, there are many potential ways to uncover hidden income from a business owner during a divorce. Consider using some or all of these strategies if you suspect your spouse is hiding money from you.