Are you wondering how forensic accountants help in divorce? A divorce can be stressful enough to deal with, especially when it comes to figuring out complicated financial matters. However, those considering divorce often hire a forensic accountant that can help locate hidden assets. Using a forensic accountant can help important information be revealed that can help with the divorce proceedings.
How Forensic Accountants Can Benefit in the Divorce Process
Finances can cause a lot of contention during a divorce proceeding. This is why it is important to hire a forensic accountant. They will work to investigate any discrepancies in the married couples’ business and personal finances. This can help prevent a divorce process from lingering.
There are many different ways a forensic accountant can help your divorce case.
Identify Liabilities and Joint Assets
In the majority of marriages, one spouse will take care of the finances. However, this can be one of the biggest disadvantages should a divorce occur. Once a divorce is impending, the other spouse may attempt to hide some of their assets to obtain a more favorable settlement. This is where a forensic accountant comes in handy. He or she can determine and report all liabilities and joint assets and ensure they are in order. This can lead to transparency, which results in equitable division of assets.
Appraise Businesses, Properties, and Assets
Forensic accountants do more than just calculate numbers. They also deal with the details behind those numbers. Your accountant can help calculate the actual value of businesses, assets, and properties during the divorce process since they are equipped with the necessary skills to confirm and explain all financial data that comes up during an appraisal.
Determine if There Are Hidden Assets
It is not uncommon for spouses to try and hide assets during a divorce. Besides, any assets that are not made aware of cannot be divided. Hiring a divorce forensic accountant can help make sure that all hidden assets are out on the table. This can be done using a variety of methods of returns, such as reviewing tax returns and the spending habits of the other spouse.
Determine Child and Spousal Support
In a divorce, the spouse that earns the most money often will not report their income accurately to minimize child support or alimony obligations. However, a forensic accountant will be able to reveal hidden assets to help figure out the actual income so the court can correctly calculate the child support and spousal support payments.
Assess Joint Fund Spending
Most spouses have a joint bank account. However, if you have decided to file for divorce, the last thing you or your spouse should do is take out large sums of money from your joint account without being able to show proof of how you spent it. During the divorce process, it is beneficial that you hold on to your money in the bank so that you can have a paper trail. A forensic accountant can determine how each spouse is spending joint funds during the divorce process. As a result, this will help with the division of assets.