Hidden Assets

Hidden Assets:

Hidden assets and undeclared income are very often hard to find, sometimes clues are left that are very meaningful to a trained eye. The problem then becomes a matter of proving the allegation, rather than determining it. If hidden assets are commercially related then a visit to the business premises is very helpful, and sometimes it helps rule out certain areas which might otherwise he explored. For example, a business with gas stations has less of a probability of unreported income than a supermarket.

Another way of looking for hidden assets would be to check the lifestyle of the person earning the income and match it with the income being reported. If  he/she drive a Rolls Roycet then how was it paid for? What kind of clothes are being purchased, where does he/she travel and what hotels does he stay at? If the figures don’t add up then there are definitely hiddens assets being kept somewhere.

The process of finding and proving unreported income or hidden assets is often one of the most difficult assignments of a financial detective, and the costs must be weighed carefully against the potential benefits. In most cases, the process is much easier than one might think. Unreported income and hidden assets are often alleged in divorce proceedings, with the spouse who is not running the business claiming that unreported income should increase both the spousal support award and the valuation of the family business. Most cases of hidden assets fraud are usually reported by a hurtfull spouse or vengefull business partner.