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Proving Income From A Cash Business

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How do I prove how much my spouse earns from the cash business so that I get the proper amount of child support and spousal support?

When your spouse has a cash business, it is very important to carefully complete the monthly expense portion of the Statement of Net Worth to show how much money the family spends on average each month. If the working spouse does not report the true income on the tax returns, then showing what is spent every month will help prove the real income. For example, if only $25,000 is reported on the tax return but the monthly mortgage and taxes are $2,500, utilities are $600, food costs $600, car payments are $600 and car insurance is $200 it is easy to see that just these expenses far exceed the reported income. If vacations, dinners out and jewelry are paid with cash that is another indication of unreported income.

The Statement of Net Worth also has a secton for reporting assets and liabilities. If there are many assets and few liabilities that is another strong indication of income which allowed savings and purchases.

If there are no credit card debts, bank loans, gifts or inheritance then the money to pay for all of these items is probably coming from the cash business.

Your attorney may want to take the deposition of your spouse under oath to ask financial questions and to show paid bills and ask where the money came from to pay the expenses. Preparation is important so that the right questions are asked and inconsistencies are exposed. If the amount of income is large enough, you may need the help of a forensic accountant.

Please contact our firm so that we can help you receive the proper amount of child and spousal support .