Are you seriously considering or in the midst of filing for divorce. It is important to pay attention to tax returns and financial records in a divorce. They provide significant insight, factual data and documentation for forensic accounting when hidden assets or undervalued assets are in question.
This time of year is traditionally tax season, although the filing deadline has been extended to May 15th. If you are considering or approaching the end of your marriage it is important to pay attention to tax returns and financial records in a divorce. Tax season is a good reason to assemble copies of the past 3 to 5 years of tax returns as well as bank and financial statements for every financial account, retirement vehicle or debt.
These important tax and financial records provide sound insight into your assets and liabilities. This is especially true if your spouse “handled the taxes or finances” in your relationship.
Generally speaking, California family law requires all community assets and debts to be equally divided between the parties. One of the first actions you will take is to provide financial disclosures which require a truthful, accurate, full and open disclosure of any asset or liability in the name of either or both of the spouses.
Unfortunately it is not uncommon for one of the spouses to attempt to hide money or assets, or under-report the value of an asset during the course of a San Diego divorce. This is why it is so important to pay attention to tax returns and financial records in a divorce and to prepare comprehensive copies of every statement, report or tax return for the past 3 to 5 years.
A thorough knowledge of all of facts surrounding your community assets and debts places you in a much stronger position to accurately seek a fair division of the community property in your case.