How is Forensic Accounting Used in a High-Asset Divorce Case?

 Posted on June 14,2022 in Divorce

As high-income individuals getting divorced can attest, having money does not solve all of your problems in life. In fact, affluence can make divorce much more complex – especially if a spouse is not honest about income, assets, and debts. Forensic accounting is a process used in high-asset divorce cases to uncover hidden assets and other forms of fraud.

If you are getting divorced and suspect your spouse is transferring funds, concealing assets, misrepresenting income, or otherwise lying about money, forensic accounting may be useful in your divorce case.

Hidden Assets and Undisclosed Income in a Divorce

Spouses may use many different tactics to falsify financial information in a divorce. For example, a spouse who wants to avoid sharing assets with the other spouse in a divorce may hide money in offshore accounts or transfer funds to a co-conspirator. Some distort the value of the marital estate by undervaluing assets of great worth like antiques or fine art. Business owners may alter business financials to make the business appear less profitable than it actually is or use business investments to hide personal assets. These types of unlawful tactics undermine the divorce process and prevent the other spouse from receiving a fair divorce settlement or award. Financial fraud may reduce the amount of money a spouse receives in child support or spousal maintenance and lead to an inequitable division of marital assets.

Forensic Accountants Analyze Financial Documents and Accounts for Signs of Deception

Divorce attorneys sometimes work with forensic accountants to investigate a divorcing spouse’s finances and look for signs of financial fraud. Forensic accountants use their investigative and analytic skills to evaluate financial data, appraise assets, and verify information. The accountant may read through financial statements, records, documents, and computer files to look for patterns and inconsistencies. Bank accounts, tax documents, credit card statements, business documents, and emails may also be valuable sources of information in the divorce case. Forensic accountants may interview witnesses to corroborate their findings. Some forensic accountants testify regarding their conclusions and professional opinions in divorce proceedings.

Contact Our Kane County Divorce Lawyers

Hiding property, falsifying financial records, and underreporting income during a divorce is unethical and illegal. At Goostree Law Group, our St. Charles divorce attorneys help spouses uncover these types of deceptive practices and get clients the divorce outcome they deserve. Our team frequently works with forensic accountants, investigators, appraisers, and other financial professionals during high-asset divorce cases. We have the legal knowledge, experience, and connections you need.

Call Goostree Law Group today at 630-364-4046 for a free consultation.

Source:

https://www.fcpas.org/about-us/what-is-a-forensic-accountant/