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How Can A Forensic Accountant Help in a Divorce?

How Can A Forensic Accountant Help in a Divorce?

Divorce proceedings can be much of a tasking venture, which is made complex due to financial matters. To ensure a less rocky experience, parties seeking divorce are often advised to get the help of forensic accountants who specialize in divorce cases.

Their job is to take complex financial matters and make them easy to grasp and apply in the divorce proceedings. Also, they help to unveil hidden financial information that could help make the divorce proceedings go smoothly. They help promote transparency in a divorce case.  To know more about how a forensic accountant can help in a divorce case, then keep on reading.


Forensic Accounting Defined.

Forensic accounting refers to the various procedures used to analyze a person’s or a company’s financial portfolio when settling a divorce. This process includes auditing and investigating the financial status of the individuals involved and breaking down complex financial details for easy use in the divorce proceedings. Forensic accountants are often hired by the divorcing parties themselves or by their attorneys.


What is the role of a forensic accountant in a divorce proceeding?

In most divorce cases, finances rank high on the list of contended issues, which is why the need for a forensic accountant cannot be overemphasized. Forensic accountants work to unveil hidden or fishy financial situations. Their work helps many divorce cases proceed with ease and without hitches.

There are different reasons you should consider enlisting the services of a forensic accountant to help in your divorce proceedings.


Here are a few.

  1. They help mark out your joint assets and liabilities.

Most marriage unions have one spouse solely responsible and in charge of the finances. It can be quite unfavorable for the spouse who does not have many ideas about the family's finances with a divorce looming. Due to this fact, the other spouse in the know might want to capitalize on that knowledge and cover up some critical financial assets to get a favorable ruling. This is where the services of a forensic accountant are needed to do a thorough sweep through the union’s finances and unveil any hidden joint assets or liabilities to make for a transparent and fair divorce settlement.



  1. They give an appraisal of properties, assets and businesses.

Forensic accountants do not just churn up numbers. They also give valuable information that goes with the numbers. When appraising a union’s assets, businesses and the likes, they can provide detailed, helpful information that sheds more light on the data they’ve gathered by using their analytical as well as investigative skills. They help determine the actual worth of a union’s finances to facilitate a fair split between them.



  1. They help unveil hidden assets.

In many divorce proceedings, some parties have attempted to hide some of the union's financial assets to end up with a more favorable ruling. A forensic accountant is hired to prevent just that. They utilize various methods such as investigating the other spouse's expenditures and going through tax returns to unveil hidden information. They cross-check the result of their findings with what was presented as the financial status to see whether they tally. Forensic accountants unveil hidden income, false debts, assets held by fake companies, and many others. 


  1. They help determine what a fair child or spousal support should be.

In dividing up the financial assets in a divorce proceeding, the spouse with higher earnings often tries to conceal some of their assets or income streams to prevent higher taxation on child support or alimony. Forensic accountants help to unveil hidden assets and income streams to ensure a fair allocation for spousal or child support.


Conclusion

The need for a forensic accountant in a divorce proceeding is not to be ignored, mainly if the financial aspect of the divorce will be settled fairly. 


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Dennis Jao
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