A forensic accountant can offer key insights into a couple’s finances during their divorce. These financial professionals analyze and track assets to give a clear view of the couple’s financial situation. Why might you need to work with a forensic accountant?
1. You and your spouse own significant or complex assets.
Couples may acquire many valuable assets during their life, including investments, real estate, valuable personal property or retirement accounts. A forensic accountant can help you account for these assets and ensure that you understand their true value. This is particularly important in high-net-worth divorces involving large asset portfolios and complex income and spending calculations.
2. You suspect that your spouse has hidden assets.
Sometimes, a spouse might try to hide money or say they earn less than they do to get a better deal in the divorce. A forensic accountant uses their detective skills to find any hidden money or income, making sure everything is out in the open for the divorce settlement.
3. You or your spouse own a closely-held business.
Determining the true value of the business and distinguishing between business and personal expenses can be challenging. Forensic accountants look closely at business records and money details to show the true value of the business and make sure the court does not mistakenly classify business assets as marital property.
4. You commingled assets during your marriage.
In some marriages, personal assets may become mixed with marital assets. For example, one spouse may use an inheritance (which is typically separate property) to invest in jointly owned property. In another case, a business owner may use personal funds to support their business. A forensic accountant sorts out which assets should be considered shared and which should stay personal.
5. You or your spouse have a complex compensation package.
If one or both of you get special job perks like bonuses or stock options, a forensic accountant is crucial. They figure out how much these benefits are really worth now and in the future so you can reach a fair outcome for property division.
Hiring a forensic accountant during the divorce process can provide clarity, ensure fairness and help protect your financial interests. Their assistance can you achieve a fair resolution.