People in Ohio who are getting a divorce may be concerned that their soon-to-be ex-spouses are hiding assets. Individuals who are already divorced may share the same concerns about their ex-spouses. However, a thorough examination of the schedules that were filed with their joint federal tax returns can provide clues about any assets that may not have been reported.
On the Schedule B form, the names of brokerage companies, banks, mutual funds and any other sources of interest and dividends have to be provided. Foreign trusts or financial accounts also have to be accounted for at the bottom of the form.
For people whose incomes include less than $1,500 in dividends and interest, the Internal Revenue Service does not require a Schedule B. Divorcing individuals will have to examine the totals provided for those types of income on the front page of Form 1040. However, if there are foreign financial accounts or income derived from certain types of foreign trusts, the Schedule B will have to be completed no matter how much interest or dividend income is earned from those financial assets.
On the Schedule D, taxpayers have to report their capital losses and gains from the sales of individuals stocks, fund shares and other assets. If the other party in a divorce reports that there were losses or profits from the sales of stocks, it is worth finding out what happened with the proceeds of the sales and what other types of investments that party owns.
A divorce lawyer may work to protect the interests and rights of individuals are disputing with their exes regarding how certain assets should be divided in a divorce. An attorney may conduct investigations to find financial assets hidden by the other party and litigate to obtain a favorable settlement concerning the division of those assets.
