Examining A Balance Sheet For Hidden Assets During A Divorce

What procedures does a divorce lawyer or investigator use to examine balance sheets for hidden assets?

As part of the divorce process, once the parties’ balance sheets have been obtained, several standard procedures are used to evaluate the balance sheets for hidden assets. First, the statements are compared to themselves. That is, the balance sheets are summarized in columns; one column for each year. Next, the assets are traced from year to year. If an asset disappears, it could be an indication that the asset is being hidden, or that it has been sold or traded. In any case, the divorce lawyer or investigator will seek an explanation for the missing asset. The equity of each year is then reviewed. That is, the net worth of the subject (the husband or wife) is traced from year to year. A decrease in net worth over time may be a symptom of missing assets or debt incurred in an attempt to reduce the value of the marital estate. A sudden decrease in equity, especially after the date of first indication, is an obvious red flag that should be pursued. The third step is to compare the balance sheet, typically the most current, to the marital disclosures. The divorce lawyer or investigator will note any discrepancies in the presence of assets and liabilities and their values, and seek an explanation.

    "He went far above & beyond what was expected!"

    - Nita F.

    "I had an excellent experience working with Thad Murphy and his amazing staff."

    - Rhonda B.

    "Great answers to questions and quick to get ahold of."

    - R.G.

    "Great service and fair prices."

    - Julia T.

Meet Your Legal Minds

Experienced Advocates Ready to Handle Your Case

Why Choose Our Firm?

The Next Step to a Brighter Future
  • Free Initial Case Evaluation
  • Local Iowa Attorneys - We Understand YOU
  • Over 60 Years Of Combined Experienced
  • We Advocate For Our Clients

Contact Pioneer Law Office Today!

Put Your Case In Trusted Hands
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy