The Hidden Complexities of Asset Searches

Finding assets and determining their value is one of the more complicated tasks for an investigative firm. Typically, clients request these specialized investigations for one of two reasons:

1. To determine whether it’s worthwhile to spend the time and money to sue someone. (There’s little reason to do so if the person is buried in debt, which is commonly referred to as “judgment proof” in attorney parlance.)
2. If a judgment has been entered in favor of our client and they want to chase down the subject’s money and actually get paid. (Believe it or not, some judgment debtors decide to lie and claim poverty. Shocking, right?)

Complexities of asset searches

So, why are asset searches complicated?

For one, we find that a lot of people expect to pay a few hundred dollars and find every penny squirreled away by the debtor. They’re even promised bank and brokerage account information by any one of a number of websites. Unfortunately, searching for assets isn’t that simple.

While it’s possible to get a certain level of service for that price, you’re probably only going to receive database information compiled by national companies that’s available to certain industries, such as attorneys and private investigators. As we’ve previously discussed, that information may not be complete, accurate or up to date.

That’s not to say that databases aren’t useful. In fact, they are an excellent—and sometimes the only—starting point when initiating this type of investigation. Depending on the complexity of the case, however, that information can be woefully inadequate. As illustrated in a prior case study, asset searches can be very labor-intensive and complex.

And pricing an asset search is difficult. Here’s an analogy: Would you expect a mechanic to quote fixing your car without seeing it?

Just as every car issue may be different, so can every person be when it comes to asset searches.

Person A may have a very limited footprint. There may not be many places to search or records to analyze. Person B, however, may be a wealthy land developer who has multiple properties and other assets that need to be tracked.

And, sometimes, you don’t know what you’re going to be dealing with until you start digging. We always recommend a tiered approach to help manage our client’s budgets and to decide how extensive a search is warranted. Sometimes preliminary research is all it takes to determine whether you should continue in earnest or cut your losses.

Mitigating liability

One more note: Be careful when dealing with someone who promises you the universe when conducting bank account searches. Much of that information is not public record. Identification of bank accounts and balances may be done in an illegal manner, knowingly or otherwise. And, as mentioned above, investigators often rely on databases, which may be limited, inaccurate or outdated.

The best way to protect yourself and get the information you need as cost-effectively as possible is simple:

• Speak candidly with your investigator of choice and ask as many questions as possible.
• Know what can and cannot be done so you can decide if an asset search is right for you, or if you may just be throwing good money after bad.

If you decide to proceed, be prepared to provide as much information as you can, no matter how small or insignificant it may appear to be. This will help streamline the investigation and eliminate duplicate work.