The Power of Forensic Accounting in Divorce
Forensic accounting in a divorce case is a process of thoroughly analyzing a couple’s financial estate to help ensure that the division of assets and property is fair and equitable. There are several key benefits of forensic accounting in divorce:
- Locating hidden assets: A forensic accountant can search for any assets that may have been hidden or otherwise deferred. This can include searches for offshore accounts, assets that could have been reported under real market value, undeclared income, or any other financial resources that one party might be trying to conceal.
- Tracing financial transactions: A forensic accounting of a marital estate can include the analysis of financial documents to identify and flag potential inconsistencies between divorce claims and the financial records. Records that would be examined include items such as bank records, contracts, and tax returns.
- Distinguishing separate property: A forensic accounting can help to make the determination of whether any given asset should be classified as community property subject to division in the divorce, or separate property not subject to division.
- Calculating cash flow and support payments: A forensic accounting can be used to help determine cash flow, which can help to inform potential child and spousal supportorders.
Forensic accounting can be useful in any divorce, but it becomes especially critical in high-net-worth cases where finances and assets may be more complex or when one spouse suspects the other of financial misconduct and concealment.
What to Expect
A forensic accounting will require both spouses to provide extensive financial documentation. This can include tax returns, bank statements, business records, and any other financial records that might shed light on the marital estate. The process can be both time-consuming and costly. In addition to your legal fees, you should expect to pay for the time and services of a forensic accountant, who brings specialized skills to the table. In some cases, the court may order one spouse to pay for the other spouse’s reasonable forensic fees and costs.
Contact Cardwell, Steigerwald Young
While not every divorce requires forensic accounting, it is a powerful took when dealing with complex financial situations or suspicions of wrongdoing. Contact the experienced San Francisco divorce lawyers at Cardwell, Steigerwald Young to help you navigate the financial aspects of your divorce and ensure your interests are fully protected.
