Is your husband hiding money from you? The ten areas listed below have been used many times. If your husband has lied to you about money issues, then there is a good chance that he is hiding money through his employment.
Many men complain about their poor financial situation in the hopes of persuading his wife, her lawyer and the court that he has no money. Recent studies indicate that shortly after divorce, a husband’s finances soar upward and a wife’s finances fall through the basement.
By hiding money, your husband may hope for lower child support and alimony awards. You and your attorney should work to uncover any hidden moneys and to prove the actual amount of money that your husband has available to him for purposes of support and alimony. The categories listed below will give you a starting point for finding hidden income and assets. This list will help you check the possibility that your husband may have a special arrangement with his employer.
1. Salary deferred until after the divorce
Your husband may defer a part of his salary until after the divorce. Look for letters or notes asking someone to defer his income. The past history of your husband’s earnings could be telling. If he is accustomed to receiving $50,000 per year in commissions and suddenly he’s not receiving any money, this is a fact that your attorney can use.
2. Expense accounts and other “perks”
“Perks” refer to benefits over and above direct compensation that a company may offer its employees. Some companies offer very little to no perks, while the perquisites of other companies are so valuable that they almost equal the salary being paid. Some common perks are as follows:
(a) A company car for personal use
Your husband may allege that the company provides the car for business use only and if he uses it for personal use, he must pay back the company.
(b) Paid parking space
Some companies pay all or a portion of their employees’ monthly parking rates. Your husband may tell you that he pays his own parking expenses. He may even pick up parking receipts off the floor of the parking garage or make a deal with one of the parking attendants to give him extra receipts.
(c) An expense account
Expense accounts range from small to large. Your husband may have an expense account to take customers to fancy restaurants, sporting events, or other functions. Look at the documents to see whether he is taking clients to inexpensive restaurants and keeping a portion of the weekly expense account for himself. Your husband may charge all or most of his meals to his employer and tell you he is paying for his food and expenses.
(d) Meal allowance
Some salesmen may be allotted a meal allowance when they are on the road. For example, one husband received approximately $15.00 per meal while traveling. Instead of eating three meals, he had three pre-mixed diet drinks costing $1.50 each and he pocketed his meal allowance ($45.00 per day).
(e) Clothing and uniform allowance
Your husband may be telling you that he has to buy his own uniforms and have them cleaned, when, in fact, this is covered as one of his perks.
3. Bonuses
Some men receive bonuses in addition to their net pay. Look for deals where partial bonuses are paid and the other portion is put into a separate account accruing to the benefit of the employee. Bonuses can be deferred for future distribution. Look for a pattern of bonus payments in the past.
4. Vacation or business trip
Does your husband’s employer pay for days at hotels when the business part of the trip has been completed? Some men are allowed to take their wives on business trips. Check to see whether his girlfriend was a guest. Your husband’s employer may allow him to use a summer home or other get-away owned by the business.
5. Vacation pay
If your husband gets four weeks vacation and only takes two weeks off, he may receive two weeks of additional pay.
6. Sick days/personal days
If your husband does not use his personal days or sick days, he may get paid for the days he doesn’t use.
7. Stock options
A stock option is the right to buy stock in a company at a reduced rate. If your husband exercises the option he may have a valuable asset of which you are not aware. He may even tell you he did not exercise the option and “lost” it. Options, whether exercised or not, can be very valuable.
8. Country club and health club
Your husband may tell you that he pays for these expenses, but his employer either pays directly or reimburses your husband.
9. Loans
If your husband wants to increase his debts and look “poor,” he may create a loan with a friend, an employer, or a family member. He may not have to pay it back, but he will tell you that he owes the money.
10. Special arrangements with employer
Look for possible signs that your husband may have a special arrangement with his employer. For example, his employer may pay some of his personal expenses or pay him a percentage of the profits. Also confirm whether your husband actually owns a percentage of the company and is, therefore, not an employee but an owner/employer.
