The Covid-19 pandemic has affected every facet of daily life and it has intense repercussions on personal and business finances. For couples facing divorce post Covid, there can be hidden assets and accounts which can impact alimony. A spouse may be dishonest about the state of their finances, and one of the best ways to ensure you have a full picture of their finances is an asset search.
Many businesses took out SBA Paycheck Protection Program (PPP) loans to pay their workers from April 2020-May 2021 to cover the losses created by the mandatory quarantines, sick workers, and general lack of business. There was a total of $800 billion of the loans that were taken out. If a couple is in the midst of a divorce and a wife knows that her husband is in the process of liquidating his business. She wants to know if he received the 1st PPP loan and needs to understand how much valuation that would add to his business. A dishonest spouse may undervalue the business. An asset search can be useful in this instance. It will uncover hidden loans or bank balances.
Additionally, a spouse may have written off expenses on his taxes, such as a home office or transport, despite the fact that he was still working from his original office location. He may have reported a loss, but actually gained income by way of pandemic assistance. Some spouses may defer payments owed to the business from their clients until after the divorce, overpay tax or hide money in offshore accounts.
A child tax credit was introduced this year. On July 15th, parents began receiving $250-300 per child each month. This helps middle and working class parents that make under $150,000 per a year. A spouse may have received the child tax credit and used the money to fund business expenses. If you are concerned about hidden assets and income that your spouse may have not disclosed then contact us today.
At Amaral & Associates P.C., we understand how business owners can hide assets. If you or someone you know are thinking about getting a divorce or other family law matter, and reside in Massachusetts, please call Amaral & Associates, P.C. at (617) 539-1010 or visit us at www.Amarallaw.com for information about what your next steps should be and whether mediation or a traditional divorce is the best option for you.