Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Tax Returns Can Make or Break Your Case

By Janice Page
February 01, 2004

The primary purpose of a tax return is for government entities to assess income taxes on the earnings of a business or individual, but in divorce, the role of the tax return is much broader and serves various purposes. Business and personal tax returns should be thoroughly analyzed before marital assets are divided and before income is set for the purpose of determining spousal maintenance and child support. If analyzed properly and creatively, they can help show whether: 1) there was financial irresponsibility; 2) income is much greater than appears on the surface; or 3) assets no longer exist that one spouse assumes still do exist.

Financial Irresponsibility

I was recently approached by a divorce attorney who was handling a litigated divorce that involved a custody battle for two small children. In addition to developing a picture of the husband's inadequate parenting, she wanted to make a case for his financial irresponsibility as well. He was the primary breadwinner and made most of the financial decisions in the marriage. The only documents I had available were 5 years of personal tax returns, the W-2 forms and the Statement of Net Worth. The husband and wife were both wage earners. They had been renting their apartment and were barely able to make ends meet. When her generous parents gifted them a sizeable amount of money to be used as a down payment on a home, they purchased an expensive residence, taking on a very high mortgage. This spiraled them into enormous debt, which they could not sustain. The final result was that both spouses had to file for personal bankruptcy.

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.