Most people who are contemplating or in the process of
seeking a divorce know that they need a divorce attorney. But do you also need
a forensic accountant? If you face a wide variety of financial and legal issues
during your divorce, the answer may be yes. Here are a few of the most
important ways they can help straighten out issues before, during, and after
your marriage.
How a Forensic Accountant Helps With Pre-Marital Finances
If you brought any assets into the marriage from your single
days, these may be protected from division as marital assets. However, you will
need to prove both their origin and how they were used during the marriage. A
forensic accountant knows what assets may qualify for this protection and how
to demonstrate their origin. They can also build a record showing whether they
were or were not used for household expenses.
How a Forensic Accountant Helps With Marital Finances
Most divorces involve the disentangling of finances over the
lifetime of the marriage. While some financial situations are easy to untangle,
most can be very challenging. Why?
First, you'll need to locate and identify all potential
marital assets and debts which must be divided. This may not be easy if you
suspect your spouse is hiding (or has hidden) some assets or debts from you.
Forensic accountants go beyond the surface to look for signs of hidden financial
assets ranging from secret bank accounts or undeclared property to cash
disappearing from joint accounts.
Some couples need assistance valuing their shared and
individual assets. This is particularly challenging if there is a business
involved. In addition to agreeing on an honest business valuation, one or both
spouses may need to ensure that they know about all sources of income and
identify legitimate expenses. A forensic accountant can also help value unusual
sources of income such as royalties or foreign income.
You may also want to go over your income tax returns (and
any other taxes you may have been responsible for) with your forensic
accountant. Because you both are equally liable for all statements and taxes
calculated on joint tax returns, it's important to ensure they are correct. If
your spouse has been the one to do most or all of the tax filing, it's good to
find any potential errors or omissions before the IRS does.
How a Forensic Accountant Helps with Post-Divorce
Finances
A good forensic accountant can also help you prepare for
your future as a single individual. They may begin by assisting you in deciding
how much to request in child and spousal support. Support calculations can be
complex because they depend not only on your spouse's assets and earning power
but also your own future earnings capabilities and the style of living you
shared in the marriage.
Once you have a firm grip on your marital and individual
assets, the other main goal will be to agree on a division of those assets and
accompanying debts. Failure to find an agreement that works for both parties
results in expensive court hearings and losing control as state rules take
over. Your accountant will take the information they've uncovered to help you
find the best solution for equitable distribution.
Where to Learn More
Could your divorce benefit from the investigative services
of a forensic accountant? If you think it might, start by consulting with an
experienced firm that provides these services. Quality
Bookkeeping Services Inc.has aided North Carolina residents in
ensuring they have all the facts at hand to engage in truly fair divorce
negotiations. Learn how we can help you by making an appointment today.
