Denver, Colo. – Separated or divorcing couples should be overly cautious at tax time in April. Stories about a spouse signing blank 1040s and not even getting copies of a tax return increase this time of year and can have big consequences.
Spouses who spite their other half oftentimes resort to conniving, damaging acts of retribution during tax time when they know the marriage is headed downhill.
Each person must be mindful of assets and debts as they proceed to a divorce. Hiding or selling assets without permission can make proceedings ugly. And sometimes a spouse transfers assets to themselves without the other person knowing.
“Divorces are stressful enough that when an individual tries to turn up the pain it can come back to haunt them,” said Colorado divorce attorney Bill Thode. “Add expenses of trying to find hidden assets or the paper trail only complicates things.”
If copies of the tax returns are available or a spouse can speak to the tax preparer to get them, it is the logical place to see what assets a spouse could be hiding. Schedule B shows any mutual funds, sources of dividends and interests at banks exceeding $1,500. Anything less than that amount would be on the first page for the 1040 tax return. Schedule B also lists accounts in foreign countries.
Schedule D shows capital gains and losses from stock and other asset sales. If a spouse is wondering what funds were used to purchase these investments and where the proceeds went to, this is where to begin the hunt. Schedule E shows income or loss from rental real estate, estates and trusts, partnerships and S corporations, and will include location addresses should it be worthy of scouting out.
The Denver based Thode Law Firm has top-tier representation to help clients with contested divorces and the division of assets. They partner with each client to create a strategy that encompasses their unique needs and concerns. For more than a decade they have excelled in divorce trial cases involving asset and property division, enforcement of maintenance, and child custody matters.