Hiding Income / Suppressing Income
We are often faced with the issue of the opposing party hiding or suppressing their true income or ability to earn in domestic cases.
This is, of course, an attempt to minimize support obligation(s) in alimony, post-separation support or child support claims, and even occasionally in property division disputes.
Can You Hide Income from Your Spouse During Divorce?
Hiding income is violation of tax law. It is also a violation of the North Carolina domestic law.
What Penalty Can I Face for Withholding Income?
The court will impose punitive measures against individuals found to be hiding or suppressing income.
How Do People Hide Their Income?
Examples often include a spouse quitting or “losing” a job on purpose, or taking a much lower paying job in anticipation of court or a separation or putting money away in hidden accounts.
Can a Divorce Attorney Find Hidden Income?
In response to hidden income, we build a case to show that the opposing party has the ability to earn more, and that they are intentionally suppressing their income to avoid support obligations. A forensic accountant can be an invaluable resource during this process.
When sufficient evidence is found, attorneys will then ask the judge to use the higher income for purposes of the support case. The judge may also award all costs and expenses incurred in uncovering the abuse where permissible, as well as other punitive measures.
If a party is involved with a “cash business” or is being paid in cash for jobs or side jobs, we work to obtain direct or circumstantial evidence to back up the claim.
Is it Difficult to Find Suppressed Income?
In many cases it is surprisingly easy to demonstrate expenditures above and beyond income. You can also use evidence of an individual working with no record of payment. There are various other methods attorneys, private investigators, and forensic accountants employ.
