Ten Ways Your Spouse Can Hide Money Through Employment

Is your spouse hiding money from you? The ten areas listed below have been used many times. If your spouse has lied to you about money issues, there's a good chance your spouse is hiding money through his or her employment.

Many divorcing spouses that will likely have to pay alimony or support complain about their poor financial situation in the hopes of persuading the other spouse, their lawyer and the court that they simply have no money.

If you believe your spouse is hiding money in an effort to lower child support and alimony awards, you and your attorney should work to uncover hidden income and assets and to prove the actual amount of money available for purposes of support and alimony. The categories listed below will give you a starting point for finding hidden income and assets.

Learn more about how to find hidden assets in divorce.

1. Deferred Salary Until After the Divorce

Your spouse may defer a portion of salary until after the divorce. Look for letters or notes asking someone to defer your spouse's income. The past history of your spouse's earnings could also be very telling. If your spouse is accustomed to receiving $50,000 per year in commissions and is suddenly not receiving any, this is a suspicious 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:

• a company car for personal use
• paid parking space
• expense accounts
• meal allowances, and
• clothing and uniform allowance.

Even though expense accounts are intended to be used for business expenses, some spouses might use them in a way to hide money they're using for personal expenses. For instance, they might keep a portion of a weekly expense account for themselves, or they might charges meals to the employer but also list them as a personal expense in their financial declarations with the divorce.

3. Bonuses

Some employees 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 Trips

Does your spouse's employer pay for days at hotels when the business part of the trip has been completed? Some employees are allowed to take their spouses on business trips. Check to see whether your spouse took someone else a guest.

5. Vacation Pay

If your spouse gets four weeks vacation and only takes two weeks off, he or she may be entiitled to two weeks of additional pay.

6. Sick Days or Personal Days

If your spouse doesn't use personal or sick days, he or she may get paid for the unused days.

7. Stock Options

A stock option is the right to buy stock in a company at a reduced rate. If your spouse exercised employee option(s), he or she may be sitting on valuable assets of which you are not aware.

8. Country Club and Health Club

Your spouse's employer may be paying for these expenses.

9. Loans

A common way divorcing spouses increase debts and look "poor," is to create a loan with a friend, employer, or family member. The loan may be a sham, which never has to be paid back, but it will be listed as a debt in the divorce.

10. Special Arrangements With an Employer

Look for possible signs that your spouse may have a special arrangement with his or her employer. For example, your spouse's employer may pay your spouse a percentage of the company's profits. Also, try to confirm whether your spouse actually owns a percentage of the company and is, therefore, not an employee but an owner or partner who is entitled to additional profits or returns.