Divorce Financials: Using a Tax Return to Find Income and Assets

While consumers generally hate income tax returns because of their complexity, they can be invaluable sources of information in divorce proceedings. Not only do they provide insight into prior years’ earnings, they can also point to assets and sources of income. They may be used to unearth financial information that a spouse omitted from the financial disclosures, and can hold subtle clues to otherwise unknown financial details.

For example, assets are sometimes sold by the spouses to generate cash. Many times this may be a taxable transaction reported by the purchaser to the taxing authorities. Therefore, such a transaction will be required to be reported on the income tax return, and this may help unearth a hidden asset or provide clues to concealed cash.

Information on income and assets can be found within the personal income tax returns in the following areas:

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Changes to Sarbanes Oxley?

This week an article in the Wall Street Journal explored whether there might be some changes coming for Sarbanes Oxley. With President Trump talking about rolling back regulations, business groups that want Sarbanes Oxley softened may get their way.

Sarbanes Oxley requires management to assess the internal controls over financial reporting (those things which are supposed to help prevent errors and fraud). Section 404(b) requires the auditors to evaluate that assessment and provide an opinion on it.

Some say the rule is too costly for smaller companies, while those in support of it say that it has helped ensure financial reporting integrity. Companies with a market cap under $75 million have never had to comply with Section 404(b). Possibly legislation could raise that threshold to $250 million or even $500 million.

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Multi-Level Marketing in Uganda

No group of people, no matter how poor, are immune to the predatory practices of multi-level marketing (MLM) companies.  These companies are nothing but glorified pyramid schemes, causing financial losses for more than 99% who get involved.

A Chinese MLM called Tiens has set up shop in Uganda, despite the fact that the average income is $2 per day (so few people can afford overpriced snake oil). Tiens is using false income claims and lies about medical cures to recruit distributors.

Filmmaker Priya Biring did a 25 minute film on this MLM, entitled “Uganda’s Health Pyramid,”  and produced by Al Jazeera News.

Priya says the following in the article that accompanies the video:

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