Page 37 - Family Law Services

in connection with their divorce. The aforementioned documents are sometimes requested directly from
the third parties to minimize the risk of document tampering.

Investments

Limited Partnerships

The parties’ investment advisers may include limited partnerships in their investment portfolio as a
strategy to maximize total return. Owners of a limited partnership are passive investors. They do not
have a controlling interest and do not make any management decisions. As passive investors, the parties’
involvement is limited to making capital contributions, reporting their allocable share of income and
loss, including capital transactions, receiving distributions, and ultimately disposing of their ownership
interest. Documents to request when tracing acquisitions of limited partnership investments may include
K-1 forms, limited partnership agreements, and copies of documents that show contributions and distri-
butions. Documentation may also include check copies, wire advices, bank or brokerage account state-
ments, and subscription agreements.

Hedge Funds

Similar to limited partnership interests, the parties’ investment advisers may include hedge funds in their
investment portfolio as a strategy to maximize total return. Owners of a hedge fund are passive inves-
tors. They do not have a controlling interest and do not make any management decisions. As passive in-
vestors, the parties’ involvement is limited to making capital contributions, reporting their allocable
share of income and loss, including capital transactions, receiving distributions, and ultimately disposing
of their ownership interest. Documents to request when tracing acquisitions of hedge fund interests may
include K-1 forms and copies of documents that show contributions and distributions. Documentation
may also include check copies, wire advices, bank or brokerage account statements, and subscription
agreements.

Public and Private Company Stock

Investments in public company stock are made with cash or on margin and may entitle the investor to a
dividend on his or her shares in addition to the change in value of the stock. Public company shares can
be easily valued at different points in time based on the quoted market price as it is traded on an ex-
change. Important information, such as the acquisition date, number of shares, and acquisition price can
generally be found in the monthly brokerage account statements. Private company stock is not easily
valued because it is not traded on an exchange. When tracing acquisitions of public or private company
stock, or both, documents to request include monthly brokerage account statements, trade confirmations,
wire advices, check copies, and so on.

Bank and Brokerage Accounts

There are a number of reasons why a detailed tracing of the parties’ personal bank and brokerage ac-
counts may be requested, including to

• support a claim that specific financial assets represent or contain a spouse’s separate property;

• support a claim that a spouse concealed monies;

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