The Gray Divorce Podcast: Episode 46 Finding Hidden Cash in Divorce with Laurie Dyke CPA, CFF, CFE

Andrew Hatherley |

In Episode 46 of The Gray Divorce Podcast, Andrew chats with Laurie Dyke, founding partner of IAG Forensics in Atlanta. Laurie is a certified public accountant, certified in Financial Forensics, and a Certified Fraud Examiner with 30-plus years’ of experience as a financial investigator. 

Andrew and Laurie discuss the ways people try to hide assets in divorce, some of the tactics they use to hide assets, and some of the strategies she uses to discover hidden assets. 

The main ways people try to hide assets in divorce: 

  1. One, divert revenue off the top   
    • Expense reimbursements for employees 
    • Business revenue (cash) that doesn’t make it into the business record for taxes. How to capture that? Cash taken in at register (on the books vs off the books) 
  2. Taking money from accounts that we know exist and buying assets or shifting the funds to accounts that aren't reported. Easier to trace. 

Common Tactics for Hiding Assets 

Spouses may use a variety of tactics to conceal assets during a divorce. Understanding these tactics is crucial for their detection. Some common methods include: 

  1. Transferring Assets to Third Parties: Spouses may transfer assets to friends, family members, or business associates to hide them from the divorce  
  2. Underreporting Income: Individuals may underreport their income by not disclosing all sources of revenue, such as cash transactions, side businesses, or investment income.  
  3. Creating Fake Debt: Spouses may create fictitious debts or inflate existing ones to reduce the apparent value of their assets.  
  4. Delaying Income or Bonuses: Some individuals may delay receiving bonuses, commissions, or other income until after the divorce is finalized to keep it from being included in the marital estate​. 
  5. Hiding Assets in Business Interests: Business owners may manipulate their company’s financial statements to hide assets. This can include overpaying business expenses, deferring income, or keeping significant amounts of cash on hand that are not reported as income. 

Strategies for Discovering Hidden Assets 

Identifying hidden assets requires a comprehensive and methodical approach. Here are several strategies that can be employed: 

  1. Detailed Financial Disclosure: Both parties should be required to provide a detailed disclosure of all assets, liabilities, income, and expenses. This includes tax returns, bank statements, investment accounts, and business financials. Courts often mandate this disclosure, and any discrepancies or omissions can be grounds for further investigation.
  2. Subpoenas and Legal Discovery Tools: Attorneys can use legal tools such as subpoenas to obtain financial records from banks, employers, and other institutions.  
  3. Public Records Search: Public records can reveal ownership of real estate, vehicles, and other assets. Searching property records, vehicle registrations, and business filings can uncover assets that a spouse may have tried to hide​. 
  4. Private Investigators: Hiring a private investigator can be useful in cases where there is strong suspicion of hidden assets. Investigators can conduct surveillance, interview witnesses, and gather evidence that may not be accessible through financial records alone​  

Resources 

The best way to contact Laurie is: 

Website: www.iagforensics.com 

Tel. Number: (770) 635-1593