Keeping Financial Integrity in Divorce
Going through a divorce is one of the most challenging scenarios anyone can encounter — it can be emotionally draining, frustrating, and stressful. There are many elements of a divorce, such as child custody, child support, and alimony. However, the issue that can cause the highest contention is the division of marital assets — and when one spouse isn’t one-hundred percent financially transparent, the other spouse may be at a disadvantage.
Read on to learn about why someone may need forensic accounting in their divorce and the benefits.
Uncover Hidden Assets or Income
When one spouse isn’t upholding their financial integrity in a divorce, it can put the other spouse in a precarious situation. If you suspect that your spouse may be hiding assets or income, this is when hiring a forensic accountant can be helpful. They can search for potentially undisclosed assets, including the following:
- Bank accounts (including off-shore accounts)
- Insurance policies
- Mutual funds
A forensic accountant may use several different ways to locate hidden assets, such as:
- Asking about the spouse’s habits to determine potential locations where assets may be kept.
- Asking for contact information of family members should financial transactions have been made to them.
- Reviewing income tax returns.
- Reviewing financial account statements such as checking accounts, savings accounts, etc.
- Reviewing credit card receipts for purchases made.
- Reviewing loan applications.
- Searching public records.
When a business is involved, it can make divorce a bit more complicated. Some divorcing couples may disagree about the value of the company. Having a forensic accountant perform a business valuation can be a fair way to help couples reach an amicable agreement on how the business will be split in the divorce.
Other Benefits to Forensic Accounting
A forensic specialist can also help your attorney prepare your case by assisting them in gathering the information needed for subpoenas or a deposition. They may also be able to help with:
- Searching for inconsistencies between financial information and documentation.
- Find discrepancies between financial and non-financial information.
- Determine cash flow (this may be used to calculate alimony and child support payments).
- Determine personal expenses that may be accounted for as a business expense (this may impact a business valuation).
Need Help With a Divorce in Colorado Springs? We Are Here For You.
Our family law attorneys at Drexler Law understand how difficult it can be to navigate through the divorce process. When facing divorce challenges, we are here to ease your concerns with support and guidance throughout the process. We’re prepared to uphold your rights to ensure your best interests are protected.
If you need assistance regarding divorce or any other family law matter, schedule a consultation with Drexler Law by calling (719) 259-0050 today.