No one wants their divorce to be any more complicated or expensive than it needs to be. However, when significant and/or complex assets are at stake, it may be cost-effective for a spouse to bring additional professionals on to their divorce team in addition to legal representatives.
For example, if a spouse is concerned that their soon-to-be ex isn’t being completely transparent and honest about their assets, it may be worthwhile to retain a forensic accountant to find those assets.
What can a forensic accountant uncover?
A spouse is more likely to try to hide assets if they’ve been the primary or sole “money manager” in the marriage. They may have accounts or investments their spouse knows nothing about – maybe even in offshore accounts under a name that can’t be easily traced to them.
If they have their own business, they may have the opportunity to hide personal assets in business accounts or transactions. Sometimes, spouses hide money by undervaluing assets or even by giving family or friends money that will be returned once the divorce is final.
These are just a few of the things that a forensic accountant can uncover. Forensic accountants don’t only look at account statements and business records. They can review tax returns. They can also look for hidden debt that hasn’t been disclosed so that the other spouse isn’t held responsible for it if the spouse who owes it refuses to pay.
Their role in court
Forensic accountants may testify in divorce proceedings regarding their findings to help their client get the property division settlement as well as the support orders they deserve. Expert testimony that a spouse has engaged in fraud to avoid fair divorce agreements can put that spouse in disfavor with the judge. It may not get to that point if that spouse agrees to a fair settlement when their attempts to hide assets are discovered.
Every couple and every divorce case is unique. It may be wise for divorcing spouses to rely on the guidance of their legal team and other professional advisors to determine whether bringing in a forensic accountant is likely to pay off financially. If it is, the earlier they can get to work, the easier it may be to uncover hidden assets.
