Yes, You Can Figure Out If Your Ex-Spouse is Hiding Money and Assets in Your Separation or Divorce With A Little Bit of Digging…

Yes, You Can Figure Out If Your Ex-Spouse is Hiding Money and Assets in Your Separation or Divorce With A Little Bit of Digging…

If you’re serious about finding out whether your ex-spouse is hiding money, investments and assets in your separation or divorce, you need to know and use these techniques to uncover the truth about their income and assets.

Hi, my name is Thomas O’Malley.  I’m an experienced family lawyer in Durham Region and the GTA.

Statistics are available for many businesses and can help in making business comparisons to see if reported numbers make sense.  The analysis of certain ratios can be an effective tool in discovering hidden income, especially when the lifestyle differs from the reported income.

Let’s review the important issue of net income ratio. 

Assume, for example, that statistics show the net incomes of typical doctors of internal medicine are approximately 50% of their gross receipts.  This means that the ratio of their net profit to their gross receipts is 50%. 

Now assume that the case involves an internist with his own medical practice, and they report on their income tax return a net income of only 20% of his gross.  It is possible that the internist is an incompetent businessperson with excessive overhead and poor profits.

It is also quite possible that personal expenses are being paid for by the business and being recorded as business expenses.  Therefore, it may be that 30% of the gross is actually personal income being disguised as business expenses.

This net income ratio is very helpful in directing one’s attention to verify whether the expenses are actually business expenses.

Another important calculation is the cost-of-sales ratio to see if a businessperson is hiding income.

Assume, for example, that statistics shows that the cost of food sold by high-end restaurants is typically 60% of the sales price.  For instance, assume that if a restaurant sells a meal for $50 (not including drinks), the cost of the actual meal is $30.  The restaurant, therefore, makes a gross profit on the meal of $20, for which it pays rent, salaries etc.

Assume that the case involves a high-end restaurant owner, and you see that they report sales of $3 million with the cost of sales of $2.5 million-which means that their cost of sales is 83% of his gross. 

Using our assumed statistics, the cost of sales should be around 60%. 

There are several reasons that this could be the case.  Again, perhaps they are an incompetent businessperson who does not buy well, so that their costs are higher than the industry norm.  Perhaps food prices have skyrocketed in the past year, but they were unable to pass the costs to their customers.

Or perhaps, they are hiding income!

You certainly see how looking at these rations can help you determine whether your ex-spouse is hiding income in your separation or divorce!

If you have any questions about your separation, divorce or family law case and you would like our help, there’s a few ways to contact our office.  You can leave a message on my Facebook law office page, visit my website at www.canadiandivorcelegaladvice.com, or call me directly at 905-434-8837. 

We would be happy to speak to you.

Oh, by the way, did you know you can protect your family law rights and get essential information on settling your family law issues with your former spouse with the daily indispensable family law advice and tips at my FREE Facebook group? 

Click here to find out more: Durham Region Separation and Divorce Legal Support Group  

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