Wife thinks I earn $100,000 more than I report

[Joph]

What is the name of your state? New York

Here is my problem; an old employee, who became a friend of the family, knew my password for my online bank account where I have money deposited. I own my own business and I deposite clients checks and DD into that account, all my non-cash payment go through this. There was a projected end of the year amount that was separate from the actual amount, way below, $100,000 below. I fired him last year and now in divorce court my wife's attorney is claiming that I had earn the exact amount the projected said. That information was password protected and he did not have permission and he was that only one to my knowledge that could enter, I only have a computer at work. This was one of the reason I fired him. The amount I report on my business tax return are true last year, I have an accountant and we talk about business earning. Can her lawyer legally present this evidence in court. The numbers he shows were taking illegally, are not true and my lifestyle would not be that which we lived if I actually earned that amount?
I'm afraid of tax fraud because of this and having to pay thousand in child support because of this and she wouldn't admit that he was the one that gave her that information.
These numbers are only word of mouth and not actual paperwork, at least they have not presented any physical evidence.

 

[Ohiogal]

What is the name of your state? New York

I'm afraid of tax fraud because of this and having to pay thousand in child support because of this and she wouldn't admit that he was the one that gave her that information.
These numbers are only word of mouth and not actual paperwork, at least they have not presented any physical evidence.

There would have to be testimony as to where the numbers came from and then you would have a chance to cross examine the person who stated those numbers as your income. If you couldn't cross examine the person who provided the information it would be inadmissible hearsay.

 

[LdiJ]

What is the name of your state? New York

Here is my problem; an old employee, who became a friend of the family, knew my password for my online bank account where I have money deposited. I own my own business and I deposite clients checks and DD into that account, all my non-cash payment go through this. There was a projected end of the year amount that was separate from the actual amount, way below, $100,000 below. I fired him last year and now in divorce court my wife's attorney is claiming that I had earn the exact amount the projected said. That information was password protected and he did not have permission and he was that only one to my knowledge that could enter, I only have a computer at work. This was one of the reason I fired him. The amount I report on my business tax return are true last year, I have an accountant and we talk about business earning. Can her lawyer legally present this evidence in court. The numbers he shows were taking illegally, are not true and my lifestyle would not be that which we lived if I actually earned that amount?
I'm afraid of tax fraud because of this and having to pay thousand in child support because of this and she wouldn't admit that he was the one that gave her that information.

If you are not "cooking your books" then your end of the year records and your tax records will reflect your actual earnings for the year.

Child support etc., will be calculated based on your true net profit....not your gross (before business expense) earnings....although sometimes non cash expenses are added back for the purpose of child support calculations, such as depreciation and amortization.

Therefore, there should be no reason why you shouldn't freely open your books for the court's inspection and/or an audit....nor should you be afraid of tax fraud.

If you are "cooking your books"....then your situation becomes complicated....and it would probably be in your best interest to come to a settlement with your ex.

 

[Joph]

I can assure you that I'm not "cooking the books," I was afraid that it was going to end to that argument.

I have a question concerning the worth of my business: My business yearly net profit if $45,000 and I do not know how much my business of worth. My business is on a second floor and have 3 computers, really old (win98), and it it is base on the customer's word of mouth, when people need my services they ask for me personally, one of the reason why I opened my own place. My wife's attorney says that my business is worth $400,000+. I have not even made that much in the 5 years of business. They did not get it apprassed (sp?), well no one can in for that reason, and I get the documents from my wife's attorney saying that it is worth $400,000+ and she is to recieve half of that at some point. I know that I could just get my business apprassed and done with but this cost alot and she be the one paying for this?

 

[fireboat1]

I have a friend that had asimiliar situation. The wife and atty,put a value on his mechanic business for some ridiculous price.This was ,like your case for her to get half of the so called value.What he did was to tell them to buy him out.If it was such a sweet business ,I think they said it was worth 300,000.He said He would sell it to them for 100000.This was at mediation.Went on to tell her atty.Why would you refuse to buy a thriving business for less that half of its value.Made a fool of the guy.He won his case.The business was only worth the devaluation of his tools.He was the mechanic so there was no business without him.

 

[nextwife]

Tell her if she wants an appraisal of the business itself, based upon what the business could be sold for to a third party, to go ahead and get one.

 

[Joph]

Thanks fireboat1 for that information, i am surelly going to try this just to see if they take it. I can also say that I am the business and customer come to me, the name of the business or the location are not factors in the net profit. I don't even publish my business, i'm just reference under my accupation.

I forgot to mention that her lawyer wanted me to pay for an actual appraisal that costed $300. He wanted me to use his personal appraisal ppl and any other would not hold up. This was at the begining when I did not have a lawyer of my own.
"we want to apprais your business and these are the only people that will count" - this was the last I have heard of this.

 

[Ohiogal]

Thanks fireboat1 for that information, i am surelly going to try this just to see if they take it. I can also say that I am the business and customer come to me, the name of the business or the location are not factors in the net profit. I don't even publish my business, i'm just reference under my accupation.

I forgot to mention that her lawyer wanted me to pay for an actual appraisal that costed $300. He wanted me to use his personal appraisal ppl and any other would not hold up. This was at the begining when I did not have a lawyer of my own.
"we want to apprais your business and these are the only people that will count" - this was the last I have heard of this.

The name of the business does matter. If not then you are definitely doing something wrong. People come to you based on the reputation that your business has acquired during the time you have been active.

 

[fireboat1]

Obviously her atty.is a crooked as hell.Requesting you pay for an appraisal by a appraiser only he approves is BS.What does your atty think of the jerk.Not much I hope. Good luck.

 

[Joph]

The name of the business does matter. If not then you are definitely doing something wrong. People come to you based on the reputation that your business has acquired during the time you have been active.

Well, when ppl call they ask for my advice and when ppl come they ask for me because they have been recomended. 90% of my customers are like this. Only in the begining and a few come in saying that they heard that we do "this and that". If she wants to buy the name along with the business, i'll offer her a number to see if she buys.

 

[Ohiogal]

Well, when ppl call they ask for my advice and when ppl come they ask for me because they have been recomended. 90% of my customers are like this. Only in the begining and a few come in saying that they heard that we do "this and that". If she wants to buy the name along with the business, i'll offer her a number to see if she buys.

There you go then. I agree with the ones who said if you can only use THEIR appraisal that is a bit crooked. Good luck to you.