Sudden Income Deficit Syndrome: Recognizing and Addressing Manipulated Income in Divorce

Divorce cases are rarely straightforward when it comes to finances, but few issues present as consistent and frustrating a challenge for practitioners as Sudden Income Deficit Syndrome. This phenomenon refers to the sharp and often suspicious decline in reported income by one spouse—typically coinciding with the onset of divorce. While the drop may be explained away as coincidental or circumstantial, more often than not it reflects a deliberate strategy designed to influence support calculations and asset division.

For attorneys, financial experts, and valuation professionals, understanding how Sudden Income Deficit Syndrome presents itself, why it occurs, and what forensic tools can expose it is essential for equitable outcomes.

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