For some, the word “forensic” conjures up images of scientists and crime scenes. But, forensic can also mean “suitable for court.” When getting divorced, some people choose to hire a forensic accountant. Forensic accountants are often involved in high net worth divorces and divorces where there is a business involved. But what is a forensic accountant? What do they do? Do you need one? Read on to learn more about the role of a forensic accountant in a divorce.
High Net Worth Divorces
A high net worth divorce occurs when a couple has a combined net worth of $1 million or more. High net worth divorces deal with all the matters of a normal divorce: alimony, child support, division of assets, etc. but the more assets, the more complicated the process becomes. As a result, high net worth divorces are often long and complex. Sometimes, with so much on the line, one or both spouses may attempt to keep certain assets hidden. This is where a forensic accountant will come into play.
How Can a Forensic Accountant Help Me?
A forensic accountant can determine a party’s true income by scrutinizing business records, bank accounts, tax returns, and investment portfolios. A forensic accountant may also be used when you suspect some sort of fraud to be involved. For example, a forensic accountant can uncover unethical practices, including:
- Creating fake debt
- Padding payroll
- Under-reporting income
- Overpaying creditors
- Transferring assets to dummy corporations
- Purchasing expensive items with undeclared cash
Forensic accountants can also help with tasks like valuating tangible items, such as art, antiques, and collectibles.
If you are not involved in a high net worth divorce, or you don’t believe there is any fraud involved in your divorce, you may still want to speak with a forensic accountant.
Hiding Assets has Consequences
If a forensic accountant is involved in your divorce, and he or she finds something that doesn’t add up, it will be reported to the court. The court will then be obligated to report this information to the IRS. This may prompt an investigation, causing further legal trouble, on top of an already difficult divorce. When it comes to disclosing your assets, it is important to be honest. Rather than attempting to hide assets, you should find the right divorce attorney for you. A skilled divorce attorney will help protect you and your.
If you are getting a divorce and you are interested in working with a forensic accountant, reach out to our firm to discuss your options.
Contact our Firm
The Law Office of Peter L. Jameson, PLLC understands the harsh implications of relocation can have on a child and his or her parents. When you have a contested relocation matter, it is important to have an experienced attorney to represent you in court. If you are faced with a relocation matter in Rockland County, contact The Law Office of Peter L. Jameson, PLLC today to schedule a consultation.