Finding Hidden Income in a Cash Business

I love working on divorce cases where one spouse is trying to hide money.

When a business owner has a cash business and is getting divorced, sometimes the income coincidentally (or not so coincidentally!) drops dramatically.

What can we do to investigate that? It’s hard. The business owner knows that cash leaves no paper trail and is difficult to prove.

But all is not lost. There are techniques we can use to find indirect proof of the amount of cash a business should be generating (even if the owner isn’t reporting all of it).We can do things like:

  • Look at payroll records. If you’re not earning income, why do you need so many employees?
  • Find expenses that usually move in step with income. If the income has really decreased, those expenses should decrease too.
  • Look at cash income versus credit card income. This works especially well in a business like a restaurant. If we see that credit card income has stayed stable but cash income has dropped, that’s suspicious.

This is not direct proof of hidden income. But if we can find multiple ways to prove income indirectly, a judge may be more likely to believe there is indeed hidden income.

See more examples of techniques we can use to find hidden income here.

1 thought on “Finding Hidden Income in a Cash Business”

  1. If you love those kinds of cases I’ve got a woper for you that involves five trillon of stolen royalties that I began to build up for biological and software patebts and my x stole my identity and stole all of it it wasn’t even his and because I had a 25 yr non disclosure agreeement with the government I never even told the looser. I was divorced in 2001 and just discovered I’m a victim he has had me ran from the Rd to switch out my med records to steal the whole portfolio so I’m left broke and disabled can’t even eat .about to be homeless and to one cares the police wont even make a police report there’s something wrong when I get punished and he did ALL of the crimes in my name. They took my citizenship too .

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