When a spouse is suspected of underreporting income or hiding assets, a lifestyle analysis helps uncover the truth. It compares actual spending to reported income and identifies discrepancies, which can impact both property division and support obligations.
Red Flags
- Low reported income despite a high standard of living
- Unexplained cash transactions or frequent transfers
- Business or rental deductions that appear personal
- Frequent ATM withdrawals, overseas spending, or luxury purchases
How a CPA Can Help
- Conducts comparative analysis of bank deposits vs. income reported on tax returns
- Reviews loan applications, credit reports, and expense patterns
- Uses public records to track ownership of property, vehicles, or other assets
- Quantifies lifestyle gaps and prepares summaries for court use
Benefits of Lifestyle Analysis
- Supports imputation of income for support purposes
- Assists in equitable distribution by exposing undisclosed assets
- Strengthens negotiating position or litigation outcomes
Lifestyle analysis is a powerful tool to support property division claims.