Closely-held businesses often create problems in divorces, as they need to be valued for the property division and the income needs to be evaluated for support purposes. It can be difficult to examine the income of a business that transacts with its customers primarily in cash. However, there are ways to verify whether the income being reported is reasonable.
Some of the ways that the income of cash businesses can be examined and verified include:
1. Find out the normal mark-up or profitability of the product or service being sold, and see how recently reported figures of the company compare.