Review Of Checks, Both Sides, And Stubs, Too

My “Hot Tip” for the Members of the Bar who do Matrimonial Law should not really be labeled a “Hot Tip, but ore so should be labeled standard or thorough discovery.

My experience has shown that it is very beneficial to review the original checks and the checkbook registers, both personal and business accounts, of husbands, specifically where there is an allegation of income in addition to that which has been revealed or reported to the I.R.S.

A review of a personal checkbook of either the husband or the wife with the spouse whom you represent can prove to be very informative as to the spending habits of the wife and/or the income of the husband. There are many “payees” that are not readily recognizable by an attorney or by his accountant which when explained by the spouse, reveals useful information for cross-examination at the time of trial and/or for depositions.

Although I employ an accountant in most cases where there is a private closely held business or where the husband is not a W-2 wage earner, I find that a personal review of the checks gives me a better feel about the family’s finances, which is invaluable at a later date. The accountant can help and should have close contact with the spouse as well, but a personal review, in my opinion, is the best course of procedure.

On a recent case where there was an allegation of additional income over and above that which was reported in the Case Information Statement and interrogatories, a review of the checks written by the husband’s bookkeeper on the business account revealed that there was over $50,000 in checks written to the husband which did not show up in the payroll account and did not appear on his W-2 statement from his corporation.

A review of the checks showed that they were all payable to him, and thus, represented monies available to him for his use to support the wife and children.

Because the wife had indicated to me that she thought the husband had additional accounts, but was not sure, a second review of the checks was made. This time I reviewed the back sides of the checks to ascertain how the checks were negotiated, either cashed or deposited. A review of the backs of the checks indicated two other accounts in the name of the husband, to which he was depositing monies, one being a local savings account, and one being the Bank of Ireland, with a New York Branch.

Further review of the checks indicated numerous charities that the husband was donating to and numerous entertainment events that the husband’s business was purchasing for him, such as Giant’s tickets, Eagles’s tickets, and “The Hunt” in Monmouth County.

A second area of inquiry in the discovery field that I found helpful is obtaining copies of the husband’s personal computer disks. I have two different types of computers in my office, and if the wife can bring the disks in to me, I can copy them, and they can be put back where they were found. Many times, the husband keeps the family finances on the computer, including checkbook payments, assets or other financial information that he believes his wife will not find because of her inexperience with the computer.

The only real “hot tip” is to know the file that you are working on, to know the people who are involved in that case, and to do as much discovery on your own as you can.