Rethinking the Role of Forensic Accountants in Divorce Cases

Forensic accountants are often called in to help with the complex financial matters that arise during a divorce. Their role can be as simple as determining whether a couple’s assets are distributed fairly or as complex as tracking down hidden assets and debts.

In divorce engagements, they are responsible for the preparation of a detailed report on the financial circumstances of their client and the extent of any potential liability. Forensic accountants are able to provide independent advice on matters such as insurance compensation claims and handling probate issues.

This article discusses how a financial accountant can assist in a divorce proceeding.

Uncover Hidden Assets

If you are involved in a divorce, and the other party has hidden assets, one of the things that can happen is that they will try to hide their assets from you. They may hide them away from you, or they may try to sell them off without telling you about it.

In this case, forensic accountants will be able to find out where these assets are and what they are worth. They will go through all of your financial records and look for any hidden money or assets that may have been left behind during the divorce process.

They will then go through all the paperwork associated with these hidden assets and determine how much money is owed on them so that you can receive the payments.

Calculation of Income Available for Child and Spousal Support

A forensic accountant can help determine (or verify) each party’s actual income for determining child and spousal support. This will help you evaluate the current financial situation of each party and examine their ability to pay your child or spouse in a timely manner while also considering their future needs.

Expert Witness 

They may also be asked to provide specific information relevant to the case at hand. They will provide information about the accuracy of those documents as well as how they were compiled and produced.

Business Valuations

They will use their expertise to look at all aspects of your business’ performance, including its current financial position, projections for growth and profitability, and cash flow. They will also look into past financial records and examine any lawsuits that have been filed against you or your company.

Forensic accountants can help ensure that you receive fair treatment from the court when valuing your business because they know what to look for when evaluating the value of a business.

Shadow and Adversarial Expert

In the event that there are two forensic accountants, then the two will compete in court and the judge will make the final decision about the value of the company or trust. 

A Word From Miod and Company

Moreover, forensic accounting allows for a complete and unbiased analysis of the financial aspects of a marriage. This can be done by looking at income and expenses, as well as other factors such as debt, assets, and more. Forensic accounting experts use forensic accounting methodology techniques, such as Lifestyle Analysis and the Assets method, to determine if there were any hidden assets or debts that weren’t disclosed during the marriage, and whether or not there were any unlawful activities taking place during the marriage.Need insight from a forensic accounting expert? We are here to help. Our Certified Public Accountants (CPAs) can assist you in navigating the financial complexities of your divorce. Schedule a free consultation to find out how we can help.

Image Credits: hp Accounting