People going through a divorce often need the assistance of a variety of professionals. In addition to an attorney, many spouses facing high-asset divorces may choose to hire forensic accountants.
Before they commit to a property division settlement or attend court hearings, they work with a forensic accountant to conduct a thorough analysis of their marital financial records. What motivates people to hire these specialists?
Financial misconduct is not uncommon in divorce
Spouses generally have an obligation to make thorough and accurate disclosures to one another and the court as they prepare for property division negotiations or litigation. Doing so allows them to appropriately divide their property and to make reasonable determinations regarding financial support.
Unfortunately, some people resent the obligation to share their resources or provide ongoing support. They may attempt to manipulate the settlement by hiding assets or intentionally dissipating (spending or otherwise getting rid of) marital assets.
Forensic accountants can review financial records to determine if one spouse may be hiding income or property from the other. They can help to identify and quantify the dissipation of marital assets. They can also assist with asset tracing in cases where one spouse hopes to retain certain assets as their separate property. If the matter goes to trial, the reports produced by forensic accountants can help validate claims of financial misconduct, which can influence what a judge determines is fair.
Having the right assistance during a high-asset divorce can help ensure that the final property division outcome is as fair as possible. Spouses worried about hidden assets, undisclosed income or dissipation may need this added support as they review financial disclosures.