Divorces can be difficult for couples and families, as the parties work with their attorneys to seek an equitable distribution of marital assets. A number of challenges can stand in the way of finding a settlement. Many couples turn to a forensic accountant in divorce. These professionals have in-depth knowledge and experience in locating assets, identifying transactions and handling other financial matters. Here are a few reasons spouses may want to hire a forensic accountant.
You Have Complex Assets that are Difficult to Value
Of course, it’s pretty easy to evaluate such items as cars and real estate, but there will be other assets at stake that are more difficult to ascertain. Establishing the value of securities , stock options and life insurance are complicated because they may be impacted by events taking place in the future. Forensic accountants can be helpful in placing a value on these assets.
The Potential for Fraud or Hidden Assets
Forensic specialists are trained to detect and track activity that may indicate wrongdoing involved in your divorce case, such as:
- Underreporting: If one spouse neglects to include assets when itemizing all property, they may be underreporting to prevent the other from gaining any value from it.
- Income: A person may fail to report all sources when reporting income, which can be misconduct that amounts to hiding assets. The spouse might fail to report income from an investment account or rent from real estate, for example.
- Overpaying Creditors or Creating False Debt: When reporting income and expenses, a spouse may state that they’re paying a creditor on a loan or fabricate a debt entirely.
Establishing Income-Related Issues
Establishing the amounts of types of income other than salary or hourly pay is more complex. Spouses may earn income from such sources as commissions on sales, which can be impacted by economic conditions. Forensic experts take into account past trends, existing conditions and future factors to clarify income-related issues. Couples going through dissolution proceedings may benefit by hiring a forensic accountant for divorce cases.
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Call Veriti Consulting now to speak with a professional and trusted forensic accounting firm. Reach out and contact us today at (877) 520-1280.