Unreported income and hidden assets are often alleged in divorce proceedings. The process of finding and proving unreported income or hidden assets is often one of the most difficult assignments of a forensic professional, and the costs must be weighed carefully against the potential benefits.
Techniques Used to Find Unreported Income and Hidden Assets
Gray areas include (and should be considered)
Because it is considered a payment for the benefit of the child, child support is not considered "income" to the custodial parent, nor is it "deductible" to the paying parent.
A parent who has custody of his or her child more than 50 percent of the time is considered by the IRS to be the custodial parent and eligible for a dependency exemption. Spouses who have joint custody (a 50/50 split of time) do not qualify for this exemption under IRA regulations.
It may be advantageous, then, for spouses to designate a 49/51 percent custody split within their divorce decree. Spouses with more than one child sometimes split the award of 51 percent custody of their various children between spouses. In addition, a custodial parent can waive his or her right to the exemption by filling out IRS Form 8332.
See How to figure out taxes/deductions at ehow.com