Divorces can bring out the worst in people. The person you loved, married and had children with has suddenly morphed into a penny-pinching miser who doesn’t want to provide you with your fair share of the marital assets.
You may be suspicious that they are hiding some of their assets to keep more money for themselves. However, those suspicions don’t hold much sway in court, which is why you need solid proof.
What can a forensic accountant do?
A forensic accountant goes beyond standard bookkeeping. They are financial specialists who are trained to investigate and interpret complex financial dealings. They can offer insights into a spouse’s actual financial situation. Here are some of the ways they can help:
- Uncover hidden assets: A common concern is that one spouse is hiding assets to avoid sharing them in a divorce settlement. A forensic accountant can trace cash flow patterns, analyze transactions and identify discrepancies to uncover hidden bank accounts, trusts or investments.
- Business valuation: Determining a business’s worth is vital for property division. The owner might undervalue their company so they appear less wealthy on paper. Forensic accountants assess factors such as revenue, assets, liabilities and future earning potential to provide an accurate valuation.
- Analyzing financial records: Some couples have complex financial portfolios with investments, retirement accounts, international assets and cryptocurrency. Forensic accountants can review financial statements, tax returns and transaction histories to ensure that all assets and liabilities are disclosed and valued correctly.
Not every divorce requires a forensic accountant, but there are some situations where their expertise may be beneficial, such as:
- Divorces where the marital estate exceeds $1 million or involves multiple income streams
- If you believe your spouse is hiding assets, underreporting their income or misrepresenting their finances in another way
- Your financial situation is complex and involves joint investments, real estate, international holdings and crypto wallets
- A family business or professional practice is part of the marital assets
Speak with a legal professional who can assess whether your case requires the services of a forensic accountant. They have insight into your divorce and its specific challenges and can help you make an informed decision.