A successful divorce requires a skilled team. You may be considering adding a forensic accountant to your team when it comes to your divorce. So, what is a forensic accountant? What do they do? Do you need to work with one? The answer will be different for everyone, depending on your circumstances. Read on to learn more about forensic accountants and how they can help you during your divorce.
What is a High Net Worth Divorce?
A forensic accountant is most often utilized in the event of a high net worth divorce. A high net worth divorce occurs when the couple getting a divorce has a combined net worth of $1 million or more. With more assets comes more complications. A couple will need to determine all of the normal matters of a divorce, some of which include alimony, division of assets, and so on. But, a couple involved in a high net worth divorce may feel like there is a lot on the line. As a result, one or both spouses may attempt to keep some assets hidden. In this case, a forensic accountant may need to get involved.
What Does a Forensic Accountant do?
A forensic accountant can determine someone’s true net worth. They can do this by scrutinizing business records, bank accounts, tax returns, and investment portfolios. Additionally, they can uncover unethical practices, including creating fake debt, padding payroll, under-reporting income, overpaying creditors, transferring assets to dummy corporations, and purchasing expensive items with undeclared cash. A forensic accountant can also come in handy when there is a business involved because they can valuate the worth of the business. They can also help to valuate tangible items, such as art, antiques, or rare collectibles. There are a lot of different reasons a forensic accountant may come in handy. But, it is important to note that if you or your spouse does attempt to hide any assets, and this is uncovered by the accountant, it will be reported to the court. The court would have to report this activity to the IRS, and you may find yourself in some legal trouble. Instead of hiding assets, it is important to find the right divorce lawyer for you. A skilled divorce attorney will help make sure you and your assets are protected and that you have a fair and equitable divorce.
If you are interested in working with a forensic accountant, contact us today to discuss your options.
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