Cash is not always king in the business world. While convenient and liquid, cash transactions often become a civil litigator’s nightmare.

If you’ve ever watched Judge Judy, you’ve probably noticed that among those petty claims between former lovers, a great majority of the transactions involve cash without independent witnesses. Judge Judy often has to exercise her judgment to decide who’s telling the truth.

I occasionally come across difficult-to-prove cash transaction in litigious matters. There are indeed ways to prove that cash has changed hands.

For example, for a significant amount of money, say, $10,000 or more, there is likely some record or document relating to the transaction. Under anti-money-laundering legislation,  financial institutions have a legal obligation to report large amounts of cash being deposited or withdrawn. You can probably get records from the bank regarding the transaction in question.

If the amount involved is petty, you may need to dig a bit further. ATM, withdrawal slips, or bank statements will show that money was withdrawn. If the amount withdrawn and the funds in dispute match, you will have an easier time convincing the judge that the transaction in question is indeed related to the withdrawal.

Note: Please keep in mind that this article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. The law may have changed since the publication of the article.