28 Oct

Ways to Hide Income and Assets in Divorce

While it is common for one spouse to have control over the money in a marriage—be the major breadwinner, manage spending, and maintain control of financial documentation—family lawyers and their clients can increase the chances of finding hidden assets during a divorce by being aware of some of the schemes used to hide money.

Understanding the common schemes that may be used to hide assets and income can help the spouse in the lesser financial position protect himself or herself in the divorce; and, by knowing about these schemes, you can look for signs and hopefully limit the success your client’s soon-to-be-ex-spouse will have with them. Some of the more common schemes used to hide money in divorces include: Read More

24 Oct

Calculating Income Using the Net Worth Method of Proof

In divorce cases, forensic accountants can use the “net worth method of proof” to calculate income. This is used to search for hidden or unreported income. Rather than simply taking a spouse’s word for it that his or her income is X, we can do an analysis like this to try to verify the claimed income.

This method of proof is one part of a lifestyle analysis, in which we are analyzing the party’s lifestyle and determining if that lifestyle matches the income that is being reported. This video explains the process of completing the net worth analysis.

22 Oct

Lifestyle Analysis in Divorce Cases (Second Edition)

The second edition of Lifestyle Analysis in Divorce Cases: Investigating Spending and Finding Hidden Income and Assets, published by the American Bar Association, is available now for pre-order.

The first edition of the book (published in 2015) was such a hit that the ABA asked me to do a second edition. I have updated the material from the original book, and have added about 25% new material. The new material includes more case examples, information on the new tax law that took effect for 2018, and further development of topics.

Some of my favorite new material includes: Read More

16 Oct

Getting the Best Results With Your Expert Witness

gavel-moneyMore than ever, competent and dynamic expert witnesses are critical to winning legal cases. Even if a case doesn’t go to trial, a credible expert can be the key to settling the case for your client.

I believe that an expert witness has the opportunity to make or break a case. We all know that there are few chances to fix a bad opinion when you go to court. There is one chance to express the correct opinion and support it fully. A faulty opinion, or one with little reliable support, can doom a case.

Some attorneys have their preferred experts, while others get referrals from colleagues. Each attorney works with an expert witness in the way that she or he is comfortable. However, it never hurts to hear about it from the other side. This is my perspective on best utilizing your expert witness to her or his full value. Read More

04 Oct

AdvoCare Pyramid Scheme

On Wednesday it was announced that AdvoCare and the FTC entered into a settlement which bars it from participating in any multi-level marketing (MLM) activities. AdvoCare will also give $150 million in consumer refunds.

The settlement comes after the FTC said AdvoCare was running an illegal pyramid scheme. There were allegations that the company “deceived consumers into believing they could earn significant income as distributors of its health and wellness products.”

There is interesting stuff in the complaint filed by the FTC: Read More