Divorces can be complicated– some more so than others. For example, high net worth divorces are often long and difficult. A high net worth divorce occurs when the divorcing couple has a combined net worth of $1 million or more. The more assets a couple has, the more complex the division of assets will be. During a divorce, both parties must disclose all of their financial information. In some cases, one or both spouses will attempt to keep some assets hidden. In this event, you may need a forensic accountant to get involved in your divorce. Read on to learn more about forensic accountants when it comes to divorce.
Why Would I Need a Forensic Accountant?
There are many reasons one might need the help of a forensic accountant. If you believe your spouse is keeping assets hidden, or engaging in other fraudulent behavior, you will want to hire a forensic accountant. Forensic accountants can determine your spouse’s true net worth. To do this, they will scrutinize business records, bank accounts, tax returns, and investment portfolios. In the same vein, a forensic accountant can uncover unethical practices, such as:
- Creating fake debt
- Padding payroll
- Under-reporting income
- Overpaying creditors
- Transferring assets to dummy corporations
- Purchasing expensive items with undeclared cash
You may hire a forensic accountant for your divorce, even if you are not suspicious of any fraud. For example, some people hire forensic accounts to help determine each party’s ability to pay spousal support or child support, or prepare a plan for the division of property and liabilities. Additionally, they will be able to valuate tangible items, such as art, antiques, or rare collectibles. If you are getting divorced and you need a business or certain assets valuated, reach out to a forensic accountant.
It is important to note that if you or your spouse attempts to hide any assets, and this is uncovered by a forensic accountant, the accountant will have to report it to the court. The court would then report this information to the IRS, potentially prompting an investigation. This can cause a lot of legal trouble, on top of an already stressful divorce.
If you are getting a divorce and you are interested in utilizing the services of a forensic accountant, reach out to our firm today. We are available to answer any questions and help make sure that your divorce is as easy as possible.
Contact our Firm
If you require experienced legal representation for a matter of Family Law, Supplemental Security Income, Medical Malpractice, Social Security Disability, or Legal Malpractice, Siragusa Law Firm is here to help. Contact our firm today to schedule a consultation so we can discuss your case.