Tracy talks with Miles Mason, JD, CPA about some of the common financial lies told by spouses during divorce.
One way to foil your spouse’s plans to hide income and assets from you during your divorce is by being aware of some of the schemes that can be used. It is very common for one spouse to have control over the money in the marriage, be the major breadwinner, control the spending of the money, and maintain control of financial documentation.
The spouse in the lesser financial position must take immediate proactive steps to protect herself or himself in the divorce. One of these steps is understanding some of the common schemes that may be used hide assets and income. By knowing about these schemes, you can look for signs and hopefully limit the success your soon-to-be ex-spouse will have with them.
The New York Times published a very interesting story about Joseph Ripp, the former AOL CFO who went from being a whistleblower, to finding himself with civil charges of financial fraud.
Ripp became a whistleblower in May 2001 when he faxed a letter to auditing firm Arthur Andersen about one of AOL’s business partners. He told Andersen that their client (AOL’s business partner) had forged a signature on a contract and booked millions of dollars of phony revenue.