It’s almost mind boggling how many spouses rely on their significant other to do the taxes. Most of them don’t even look at them. They just want to know the bottom line and where to sign. Check your tax return. Do the numbers correspond to what you’ve earned, spent and saved? Do the 1099s seem to be in order? Interest and dividends are reported there, along with the names of the financial institutions. Make sure you know where your assets are invested and where the accounts are kept.

I have seen a spouse pay significant income taxes, often when the payment greatly exceeds the actual income tax debt. After the divorce is over, then an amended return is filed along with a request for a refund of the over payment. In this way cash that would normally have been divided between the spouses was used for income tax payments, and the refund is not shared.

Another trick, especially for a spouse who manages property or a business, is to take steps to devalue the property over time, so that when it comes to allocate the value of the asset, the managing spouse gets the benefit of the lower value. This may include allowing rental property to remain vacant or in disrepair. Another example is to contact a business’ customers to defer payments of accounts receivable until after the divorce is finalized. Then when the accounts are finally paid, the managing spouse gets the benefit of the cash, and also the increased value of the business now with current accounts.

Income tax returns are the first place to look for possible clues as to the existence of undisclosed assets. They provide the road map to the discovery of income earning assets and asset sales. Typically, the tax return should also describe the source of all income, whether it be rents received from rental property, interest on a bank account, dividends on stocks, gain or loss on the sale of stock, and the like. In reviewing the tax returns, the attached schedules are far more important than the summary entries on the first two pages. In any event, each page of the tax return should be carefully reviewed. You can get a FREE report at Divorce Ammo.

Visit http://www.DivorceAmmo.com
Divorce Ammo – What They Don’t Tell You About Divorce
Arm yourself with divorce tips, advice, and strategies that will save you thousands on your Divorce!

Article Source:http://www.articlesbase.com/divorce-articles/find-hidden-divorce-money-from-your-tax-return-1412418.html