Some Tennessee residents who are going through a divorce may suspect that their spouses are hiding income. One way to determine if this is true or not is to look over their federal income tax return. This document can contain a variety of clues as to a spouse’s true financial picture. For instance, a person could discover if a husband or wife is paying more than necessary to the IRS.
This could be done with the intent of filing amended returns in the future in the hopes of getting a large refund after the divorce is finalized. Individuals may also try to put more money into a 401(k) or other plans in an effort to reduce their income in a given year. However, by looking at a Form 1040, it may be possible to determine how much a spouse actually made and what his or her true income is.
Information related to capital gains and losses or dividend payments could be evidence of secret accounts. If a distribution is made from a retirement account, an individual will receive a tax form with information about that transaction. As a general rule, any changes to spending habits could be a red flag prior to a divorce. The same could be true for those who aren’t given access to household financial information.
In a divorce, almost any asset acquired during a marriage may be subject to division. This is generally true of a marital home, money in a bank account or the value of a company that appreciated during the marriage. An attorney may be able to help a person obtain and review financial statements or other evidence that money or assets may have been hidden or obscured. This may make it easier to create an equitable settlement.