Unveiling Hidden Income: The Significance of Credit Card Statements in Divorce Cases

In divorce proceedings where one party owns a small business, the financial discovery process extends beyond merely gathering fundamental tax returns and bank statements. It requires an in-depth exploration to unearth the entire financial story of the business. A key area often undervalued, yet vitally important, is the scrutiny of credit card statements.

Based on our experience, credit card statements frequently disclose expenditures that are personal but paid through the business account. This practice, though not unusual among small business owners, essentially augments the income of the business owner. For instance, if a business owner uses a business credit card for personal expenses or purchases, these transactions effectively equate to additional income for the business owner.

Failure to consider these details during discovery may lead to a distorted financial representation of the business and its owner, potentially giving an unjust advantage to one party. Therefore, demanding thorough financial records, inclusive of credit card statements, during discovery is vital. This meticulous approach ensures a just and precise evaluation of the business’s financial standing and paves the way for stronger argumentation and negotiation.

In conclusion, it cannot be overstated: obtain those credit card statements! Their role in illuminating the true financial landscape of your opposing party is significant. In a divorce, knowledge is power, and those statements may hold the key to a fair settlement.