24 Jun

Using Loan Applications to Prove Income in Divorce Cases

When a party to a divorce or child support case is believed to be hiding income or assets, one way uncover proof of it is through a lifestyle analysis. Such an analysis is not only helpful in establishing the true income of the subject, it can also uncover inconsistencies which reflect negatively on the subject’s credibility.

One key piece of documentation that can help your case against someone who is concealing income or assets is a loan application. When borrowing funds for homes, cars, boats, or business investments, people are often required to disclose details of their personal finances. This usually includes disclosing monthly or yearly income, as well as the value of assets such as homes, vehicles, real estate, and business interests. Read More

19 Jun

Reasonable Certainty in Damage Calculations

chartmagnifyOne of the common issues raised when an expert calculates damages is “reasonable certainty.” It is not uncommon for opposing counsel to suggest that the expert’s calculated damages are speculative.

The calculation of damages necessarily requires estimates and assumptions. Something has happened, and a company or individual is claiming that there are lost profits because of it. We can never know with complete certainty what revenue or profits would have been if that incident or action had not taken place. Mathematical precision is not possible. Thus, the expert must make certain estimates in order to calculate damages. Read More

17 Jun

Divorce Investigation: Uncovering Hidden Income in a Closely Held Business

When a divorce or a child support issue is looming, it’s amazing how a quickly a closely held business starts “losing money.” I use quotes because such a situation is so predictable. One party wants to protect her or his assets, and when there is a business involved, the motivation to hide money can be stronger than usual.

The types of businesses that can be prone to manipulation of the books include restaurants, retail stores, doctor or dentist offices, construction companies, auto dealerships, and law practices. This list isn’t exhaustive by any means, but it provides good examples of businesses at risk of financial maneuvering.

Any business that is closely held and has finances that are easily manipulated by the owner is at risk. A lawyer filing for divorce from his wife may suddenly stop taking a paycheck and then claim he has no earnings from the practice. A restaurant owner could stop reporting cash receipts from customers, thereby claiming much lower revenue for the business while secretly pocketing the cash. A carpenter may offer customers a discount if they pay with cash and don’t request a receipt, never reporting that money as income. Read More

03 Jun

Milwaukee Public Schools Money Problems

For decades Milwaukee Public Schools has been failing to educate children, with some of the worst student performance in the country. And for decades, we have been told that money is the problem. MPS is a “poor” district. If only they had more money, the children would do better.

It’s always been a lie. All you have to do is look at how much MPS spends per student.

Typical spending in the U.S. is $12,000 per child per school year. (Most private schools spend much less and have much better outcomes.) Spending per pupil in fiscal 2017 (the school year that ended in 2018) was $12,201 nationally, and $11,968 in Wisconsin. Read More