It is no secret that divorces can be messy. Divorce may become especially difficult when it comes to determining financial issues. In some cases, one or both parties may attempt to hide assets. This may be done in an attempt to give less or receive more. Full financial disclosure is incredibly important during a divorce. Both couple’s net worths will be taken into account when it comes to determining many matters of a divorce, including alimony, child support, and the division of assets. High net worth divorces can be especially complex because the more assets, the more difficult it can be to decide upon how to share them. To rectify this, some choose to hire a forensic accountant during their divorce. Read on to learn more about how a forensic accountant can help you in the event of your divorce.
What is a High Net Worth Divorce?
A high net worth divorce occurs when the couple has a combined net worth of $1 million or more. These divorces are often long, complex, and difficult.
How Can a Forensic Accountant Help Me?
Whether you are involved in a high net worth divorce or not, a forensic accountant may be a great help to you during your divorce. A forensic accountant can determine a party’s true net worth. This can be done by scrutinizing business records, bank accounts, tax returns, and investment portfolios. Additionally, a forensic accountant can aid in uncovering unethical practices. These practices may include:
- Creating fake debt
- Padding payroll
- Under-reporting income
- Overpaying creditors
- Transferring assets to dummy corporations
- Purchasing expensive items with undeclared cash
In the event that one is hiding assets or engaging in other fraudulent behavior, a forensic accountant would have to report this to the court, and the court would report it to the IRS. This may prompt an investigation, so it is important to be honest when it comes to your finances.
A forensic accountant can help you, even if there is no fraud involved in your divorce. For example, a forensic accountant can valuate tangible items, such as art, antiques, and collectibles.
If you are getting divorced and you are considering hiring a forensic accountant, reach out to our firm to discuss your options and the next steps in the process. We are here to help with all the legal matters of your divorce.
Contact our Firm
We understand how emotional and difficult matters of family law can be. If you need the assistance of a knowledgeable attorney to help protect your right to your family, please do not hesitate to contact our experienced firm. We are eager and dedicated to helping you through this difficult time. Our personal injury specialists at Greenberg & Walden, LLC are standing by for a free initial consultation. Call us at 201-528-6928.