In any divorce case, one of the biggest issues of contention is money. Because of the significant impact that financial rulings in a divorce can have, as well as personal feelings that can drive someone to do things they normally wouldn’t, many people who are divorcing do immoral and illegal things to help them get a financial edge during the divorce.
This is where a forensic accountant comes in. Forensic accounting and divorce might not be two things that you think go together, but hiring a forensic accountant for a divorce case is actually more common than you might think.
What Does a Forensic Accountant Do During A Divorce Case?
Before you can answer this question, you must understand what a forensic accountant is. A forensic accountant is a professional who conducts a thorough, detailed investigation into cash, financial accounts, and other assets that a person or organization owns. Forensic accountants use similar methods as regular accountants for appraising financial assets, but they often take a much deeper dive into these matters.
Forensic accountants can also conduct interviews with key witnesses and other people who might have had an impact on the finances of the parties in a divorce. They take every possible step to trace a person’s assets so that a divorce can be handled as fairly as possible by the legal system.
The specific answer to the question “what does a forensic accountant do?” varies depending on the divorce case. There are a few common kinds of divorce situations that forensic accountants are hired for:
- When it is suspected that a divorcing spouse is not being honest or upfront about their assets, in order to not have to pay as much money during the course of the divorce procedure. Forensic accountants will conduct an investigation to make sure that each spouse is being open about their finances.
- When one spouse makes significantly more money than the other. In this case, a forensic accountant can be hired by either side; the spouse who makes more money can hire a forensic accountant to ensure that the other side doesn’t feign poverty to receive a higher payout, while the spouse who makes less can hire one to ensure that the other spouse doesn’t lie to make it look like they make less than they really do.
- When one or more spouses have an ownership stake in a business. It can be challenging to sort out the actual value of a business, which is why forensic accountants are so important to investigate a company’s liquid assets and future value.
Choose the Right Forensic Accountant
Now that you have a clearer answer to the question “What does a forensic accountant do?” it is important that you pick the right one. If you need a forensic accounting service for your divorce, choose one you can rely on for quality, timely work so that you can ease the complexity of your divorce proceedings.
If you are faced with the challenge of divorce and would like to explore how to get a forensic accountant on your team, call the experts at Veriti Consulting LLC. In addition to forensic accounting services, Veriti is also a licensed private investigation agency. To learn more about services we offer call Veriti Consulting at 855.232.4410 today.
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