Going through a divorce can be a challenging and emotional experience, especially when significant assets are involved. If you’re currently facing a high-asset divorce in New York, you may feel overwhelmed by the complexities of dividing wealth, property, and other financial matters. You are likely seeking guidance on how to ensure your financial interests are protected during this process. At times like these, it is essential to have the right support, and that is where a forensic accountant can be an invaluable asset in your case. We understand how overwhelming this process can be, and our firm is here to help you navigate these turbulent waters with empathy and dedication. Let’s take a closer look at what forensic accountants do in high-asset divorces and why they can be crucial to achieving a successful outcome.
Richard H. Cole
Partner
Thomas F. Hewner
Partner
Donna L. Haslinger
Partner
Vivian P. Roche'
Partner
Keith R. Rosso
Attorney
Tasha D. Frazie
Attorney
What Does a Forensic Accountant Do in a Divorce?
A forensic accountant is a financial professional who specializes in examining financial records and identifying hidden assets, discrepancies, and complex financial arrangements. In a high-asset divorce, the financial stakes are often much higher, and both parties may attempt to conceal or misrepresent their assets. This is where a forensic accountant steps in to help uncover any hidden or undervalued assets. They have the skills to trace money and property through various financial systems, ensuring that everything is accurately accounted for.
In high-asset divorces, both parties often have substantial investments, businesses, real estate, and other forms of wealth. These financial elements must be divided equitably, and any attempts to hide assets can complicate the process. A forensic accountant uses their expertise to ensure that the full extent of the marital estate is revealed. By carefully analyzing tax returns, business records, financial statements, and other documentation, they can identify patterns and discrepancies that may indicate attempts to hide assets or manipulate financial information.
Why Are Forensic Accountants Important in High-Asset Divorces?
When you are involved in a high-asset divorce, the financial complexities can quickly become overwhelming. A divorce is not just about dividing property or assigning custody; it is also about ensuring that both parties receive a fair and equitable share of the assets. If there are significant assets involved, such as business ownership, retirement accounts, or real estate, it becomes even more critical to have a professional like a forensic accountant involved.
Forensic accountants help protect you from potential financial fraud. Sometimes, one spouse may attempt to hide assets in offshore accounts, underreport business income, or transfer property to friends or relatives. These strategies are illegal and can undermine the fairness of
the divorce settlement. A forensic accountant will use various investigative techniques to trace and uncover these hidden assets, ensuring that they are included in the division of property. Without the help of such a professional, you might not even be aware of assets that should be accounted for.
In addition to identifying hidden assets, forensic accountants also play a vital role in valuing complex financial assets. High-asset divorces often involve businesses, investment portfolios, and other assets that require specialized knowledge to evaluate accurately. For example, determining the value of a family-owned business is not as simple as looking at its market price. A forensic accountant can assess the business’s financial health, its potential for growth, and its true worth, providing an accurate picture of the asset’s value.
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How a Forensic Accountant Works with Your Divorce Attorney
Your attorney plays a crucial role in guiding you through the legal aspects of the divorce, but when it comes to the financial side, a forensic accountant works hand-in-hand with your legal team to ensure that all assets are properly evaluated and divided. They will review your spouse’s financial records and share their findings with your attorney, who can then present this information in court or during settlement negotiations.
In some cases, a forensic accountant may be called upon to testify in court. Their testimony can provide clarity on complex financial matters and help explain to the judge how certain assets should be divided. A forensic accountant’s role in this regard is to present an impartial, clear, and thorough analysis of the financial situation, which can help the judge make an informed decision.
Forensic accountants also assist with the creation of a financial plan that ensures your financial stability after the divorce. They may work with your attorney to develop strategies for dividing retirement accounts, determining spousal support, and addressing the tax implications of the division of assets. The goal is to ensure that you are not left in a precarious financial position after the divorce is finalized.
When Do You Need a Forensic Accountant?
While not every divorce requires a forensic accountant, their services are particularly valuable in high-asset cases. If you or your spouse owns a business, has substantial investments, or has complicated financial records, it may be in your best interest to involve a forensic accountant early in the divorce process. Similarly, if you suspect that your spouse may be hiding assets or misrepresenting their financial situation, a forensic accountant can help uncover the truth.
Even if you do not suspect any wrongdoing, a forensic accountant can help ensure that all assets are accurately valued and divided. Divorce is often stressful, and it can be difficult to see the full financial picture while you’re emotionally invested in the process. A forensic accountant
can provide an objective, detailed analysis that allows you to make informed decisions based on a complete understanding of your financial situation.
How a Forensic Accountant Can Help You Achieve a Successful Outcome
In a high-asset divorce, achieving a fair and equitable outcome is paramount. The division of property, assets, and income must be done in a way that is both legally sound and financially reasonable. By involving a forensic accountant, you are ensuring that all relevant assets are accounted for and properly valued, increasing the likelihood of a favorable outcome.
A forensic accountant can also help you anticipate and address potential complications. For instance, if your spouse has tried to hide assets or undervalue certain properties, the forensic accountant’s findings can be crucial in demonstrating your spouse’s dishonesty. Their testimony or reports can serve as compelling evidence in court, allowing you to secure a settlement or judgment that reflects the true value of the marital estate.
The work of a forensic accountant can also lead to more efficient divorce proceedings. With a clear and accurate picture of the marital assets, your attorney can negotiate more effectively on your behalf, reducing the need for protracted litigation. The insights provided by a forensic accountant can help you make informed decisions about your financial future, ensuring that you are not left at a disadvantage after the divorce.
Dividing assets in a high-asset divorce can be one of the most complex and contentious parts of the process. A forensic accountant can help bring clarity and fairness to the financial side of the divorce by uncovering hidden assets, valuing complex properties, and ensuring that the division of wealth is accurate and just. Their work plays a vital role in securing a favorable outcome and protecting your financial future.
At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., we understand the challenges you are facing. If you are going through a high-asset divorce and need assistance in ensuring a fair division of assets, our team is here to provide the support you need. We are committed to helping you navigate the complexities of your case and achieve the best possible result. Contact us today to discuss how we can assist you in this difficult time.