The Role of Forensic Accountants in High Net Worth Divorces
How is are forensic accountants different from a normal accountant? Forensic accounting is a specialty practice that describes investigating financial situations resulting from anticipated litigation or disputes. Forensic accounting utilizes accounting, auditing, and investigative skills to conduct an examination into finances. These specialized accountants are a crucial part of your team when you are navigating a high asset or complicated divorce. They ensure marital property is fairly evaluated before division.
In today’s article, we outline some of the important roles of a forensic accountant in high net worth divorces.
What Are Forensic Accountants?
Forensic accountants play an important role in helping divorcing couples understand their financial position before, during, and after the process.
Forensic accounts are more than just accountants. They are skilled investigators. Even if there is no question of hiding money or assets, forensic accountants can be beneficial for high net worth couples.
Value Assets and Liabilities
A forensic accountant analyzes assets and liabilities and assigns a fair market value to them. This becomes important when attempting to equitably distribute marital assets and liabilities.
Examples of common assets and liabilities analyzed by forensic accounts in divorces:
Uncover Hidden Assets
One of the most important roles of a forensic accountant is uncovering hidden assets. Locating hidden accounts and determining how assets and income were used can help ensure that you receive a fair portion of marital assets.
Common types of hidden assets include:
✔️Hidden bank accounts
✔️Stocks and annuities
✔️Working off the books
A forensic accountant can help reveal essential financial information that could affect spousal support, child support, and the division of assets. One important way they do this is through testifying as an expert witness about the valuation of assets.
More duties of forensic accountants
Forensic accountants do much more than what we’ve listed in this article.
Here are a few more ways forensic accounts help in high net worth divorces:
✔️Gather information to be used in the preparation of subpoenas.
✔️Assist attorney in preparing interrogatories.
✔️Calculate the cash flow which may be used in calculating support payments
✔️Determine and quantify personal expenses.
Forensic accountants play an important role in high net worth divorce litigation. If you reside in South Florida and are considering divorce, seriously consider including a forensic account on your legal team. The role they play in is invaluable.
With over 30 years of combined experience, Jason Brodie Esq. and Joshua Friedman Esq. will guide you toward realistic goals and provide committed advocacy toward achieving them. They are known throughout South Florida for dedicated client service, tenacity, and success in complex divorce litigation involving property division, child custody, and spousal support.
To get a better understanding of the qualities our reputation is built on, contact our office in Boca Raton to schedule your initial phone consultation (561) 392-5100