Divorce can be complicated, especially when it comes to finances. Both spouses must disclose all of their assets. This is done so that assets can be divided equitably. It also comes into play when making decisions regarding alimony and child support. In some cases, one or both spouses may keep some assets hidden in an attempt to give less or get more. This happens especially often during high net worth divorces. High net worth divorces occur when the couple divorcing has a combined net worth of $1 million or more. The more assets a couple has, the more difficult they can be to divide. With so much at stake, parties may attempt to hide assets. When this happens, a forensic accountant may need to get involved. Read on to learn more about forensic accountants, what they do, and how they can help you during your divorce.
What is the Purpose of a Forensic Accountant?
There are many reasons to work with a forensic accountant during your divorce. One of the most important things a forensic accountant can do is determine a party’s true net worth. This can be done by scrutinizing business records, bank accounts, tax returns, and investment portfolios. Additionally, 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
When these practices are uncovered, the accountant will have to report it to the court. The courts would then report to the IRS, potentially prompting an investigation. Hiding assets and engaging in fraudulent behavior is likely more trouble than it’s worth. Instead, it is important to find a skilled divorce attorney who will fight to make sure your divorce is fair and equitable.
Other Reasons to Work With a Forensic Accountant
A forensic accountant can come in handy during a divorce, even when there is no fraudulent behavior. For example, a forensic accountant can valuate the worth of a business. He or she can also valuate tangible items, such as art, antiques, and collectibles.
If you are interested in working with a forensic accountant, contact our firm today. We are here to walk you through the process and ensure that your divorce goes as smoothly as possible. We want to help you with all the legal matters of your divorce. Reach out to speak with a skilled and dedicated divorce attorney.
CONTACT OUR FIRM
Peter V. Mandi, Esq. is an experienced divorce and family law attorney located in Bohemia, New York. Our firm understands the impact a divorce can have on your life. If you require strong and dedicated legal representation in Long Island, New York, please do not hesitate to contact Peter V. Mandi & Associates, Inc. today.