Finding Hidden Income in Divorce Cases


LifestyleAnalysisInDivorceCasesSmallDo you think your spouse may be attempting to hide income or assets in your divorce? One spouse commonly has control over the money in the marriage, either by virtue of being the major breadwinner, or by controlling spending, or both. The spouse in the lesser financial position should take immediate proactive steps to protect herself or himself in the divorce. ex-spouse will have with them. By being aware of some of the most common schemes used to hide income and assets, you may be more likely to see the signs.

Some of the more common schemes used to hide money in divorces include:

  • Stashing cash – It is not uncommon for an estranged spouse to start stashing money around the house, in a safe deposit box, or with trusted friends or relatives. By not keeping the funds in a bank or brokerage account, the spouse is hoping you won’t know of the money’s existence. Pay close attention to transactions that involve cash vaporizing into thin air: large ATM withdrawals, depositing checks but receiving a large amount of cash back, the sale of assets with no paper trail or no deposit to known accounts.
  • Purchasing items that are easily overlooked or undervalued – Everyone notices a new home or a new car, but who is paying attention to works of art, valuable home furnishings, or technological toys? While some spouses are paying close attention to these types of things, many are not, and  this is one great way to reduce cash while secretly increasing hidden assets.

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Presenting Complex Financial Issues to Judges


Financial expert witnesses are the key to helping judges understand complex financial issues. It is imperative that the judge understand accounting and finance scenarios if you are to succeed in court. Tracy Coenen and Miles Mason discuss how your expert witness can help judges understand.

Five Common Fraud Myths


19079420I’ve been investigating fraud for over two decades. When I first started, financial fraud wasn’t a big topic. In fact, most people had never heard of forensic accounting. Then in 2001 and 2002 everyone became more aware of the issue of fraud when the big frauds of Enron, WorldCom, and Tyco became public. It is now commonplace to hear about corporate frauds involving embezzlement, financial statement manipulation, or kickbacks.

Despite this knowledge, there are still many misconceptions about employee fraud. If owners and executives mistakenly believe their company is not at risk, they are probably not actively preventing fraud. Management must know the truth about fraud and its perpetrators in order to actively protect the company.

Here are five myths about fraud that I still run into in my forensic accounting practice. They’re often unspoken, and many would never admit that they believe them. However, I know from experience that they run rampant.

1. Our company doesn’t have an internal fraud problem.

While companies would like to believe they have good employees and adequate internal controls to prevent fraud, the fact of the matter is that studies suggest 75% of companies will fall victim to a fraud scheme. While some of these may not be large frauds, they will cause losses nonetheless. Continue reading

Focus on Fraud (Marquette Justice for Fraud Victims Program)


coverI was delighted to be a part of the cover story for the fall issue of the Wisconsin Institute of CPAs (WICPA) magazine CPA2b. The article, Focus on Fraud, profiled the Justice for Fraud Victims Program at Marquette University.

The program is part of the accounting program, and gives students the opportunity to investigate a real live fraud case. They get hands on experience, and victims of financial fraud receive pro bono fraud investigation assistance. I am the mentor for the students, guiding them through the investigation (but making it a little tough on them by making them figure things out on their own). Upon completion, we submit the investigation results to the Milwaukee Police Department and District Attorney for possible criminal charges.

Earlier this year, we were recognized by Marquette University President Michael Lovell for our community service via this program.

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Divorce Financial Analysis: Investigating Business Interests


When a spouse owns a business, it can create some of the most complicated financial issues in a divorce. It is extremely important to dive into the financial records of the business in order to value it and to determine where the money is REALLY going. Tracy Coenen and Miles Mason discuss what documents a forensic accountant needs to evaluate the business.

Clues to Hidden Income and Assets in Divorce


I often get asked how someone will know if their spouse is hiding income or assets in a divorce. Sometimes it is obvious when a document is discovered or information is leaked by someone in the know. But what if you just have a “feeling” that something isn’t right?

In working with divorcing couples, I’ve found that there are often some telltale signs of trouble. A gut feeling with some objective information is often enough to warrant further research and investigation. What are some of the common clues that I have seen to indicate hidden income and assets?

  • We are suddenly poor: The income-earning spouse has an unexplained decrease in compensation and/or you have gone from regularly having extra money to suddenly having a low balance in your bank account. Beware of the possibility that your spouse is deferring income… having commissions, bonuses, or other compensation withheld until after the divorce is over.

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Criminal Defense: Working as an Expert Witness


Defendants in criminal cases such as tax fraud, money laundering, or embezzlement often need forensic accountants to help evaluate complex financial situations. Should you provide expert witness services to criminal defendants? Tracy discusses the work and some of the issues that should be considered.

Corporate Identity Theft: It Isn’t Just For People Anymore


You thought only people experience identity theft. Only individuals become victims of dumpster diving or poor computer security. Someone gets a credit card in your name, and you’ve become a victim. You didn’t even consider that a company could have an “identity” that could be stolen.

Corporate identity theft is becoming all too common, and one of the most troubling aspects of it is how little owners, executives, attorneys and business advisors know about it. Without a basic knowledge of even the existence of corporate identity theft, people are powerless to prevent it.

It can be perpetrated in a number of different ways, but each type of corporate identity theft has one thing in common. It can destroy the reputation of a business quickly.

Credit Risks
The type of corporate identity theft people think about most often is the use of a company’s credit profile, either to fraudulently obtain credit for themselves or to make purchases in the name of the company. Continue reading

Book Review: Wall Street Smarts: A Guide to Finding Your Inner Investor


wall-street-smarts-miles-goodwinWall Street Smarts: A Guide to Finding Your Inner Investor, by Miles Goodwin, is masterful compilation of the best investment advice for the average person. The book does the seemingly impossible by pulling together the best investment advice from the best books out there. Mr. Goodwin has done the hard work so you don’t have to. He has taken decades of investment research and experience (as an average person just trying to manage his own money) and extracted the most relevant advice from some of the most knowledgeable authors. Added to this material is a wealth of information he has accumulated over the years.

Where does the average person begin when trying to learn about investments? There are lots of great articles and books out there, but how do you figure out which ones are relevant and accurate? And how do you find the time to read all of them? Simply put, most people can’t. And that’s why Wall Street Smarts is an invaluable tool for anyone who wants more control over their savings and investments. Continue reading