Those who are going through a divorce with a spouse who has a largely cash-revenue business might have reason to be concerned. Particularly if the spouse with the business is less than forthcoming in revealing financial information regarding the business, you could need to take a few extra steps to ensure your financial interests are protected. A business valuation could be the first step to take, and you will likely need to hire an expert who understands this is more than a typical, straightforward business valuation.

Of course you will need to have some idea of cost vs. benefit before going forward. In other words, is the cost of hiring a forensic accountant going to be greater than the anticipated benefits of finding any hidden cash? Your divorce attorney is the best person to help you determine whether to go forward with a forensic accounting of your spouse’s cash business, so take advantage of his or her experience in such matters. A primary question may be just how involved in the business you have been and how familiar you are with the day-to-day operations. How much do you know about how revenues are collected and the normal amount of revenue collected annually?

Even if you were not particularly involved with the business, you will know if you and your spouse have been living a $100,000 a year lifestyle yet he or she is claiming the business brings in $30,000 per year. The type of business, which is being valued, will have significant bearing on how the forensic accountant will proceed. Talking to personnel during a site visit could give the accountant a good idea of how revenues are collected, handled and recorded as well as how revenues could be omitted from the books. Be aware that searching for unreported or under-reported income can be exhausting and time consuming, resulting in considerable cost to you. Consider carefully before engaging a forensic accountant prior to your divorce.

If your marital assets are substantial, it may be necessary to retain an experienced divorce attorney to help you find all of your spouse’s hidden assets. Your financial future is at stake so hire an attorney who will aggressively seek a full disclosure of financial assets from your spouse. Many times it may seem easier just to “let it go,” and walk away but remember that you are legally entitled to these are marital assets.