High-asset divorces can present unique challenges to both parties since they often involve the division of complex financial portfolios, businesses, and investment accounts.
People with substantial assets often have complex ownership structures, use separate assets for at least part of their purchases, and may own their property in trusts or as corporate owners for tax purposes. Untangling this can be challenging, making forensic accounting an invaluable tool for uncovering, analyzing, and presenting financial information.
A forensic accountant’s job includes finding hidden assets, providing value estimates for difficult-to-value property, identifying commingled assets, and determining whether the property is separate or community.
At Towson Law Firm, PLLC, we focus on solutions that prioritize the best interests of our clients and minimize conflict when possible. The role of forensic accounting in Frisco high-asset divorce cases is to ensure a fair and inequitable division of assets without creating unnecessary disputes. Call our law office today to speak with a seasoned high-asset divorce attorney.
When people hear the term forensic, they often think of crime scene analysis. However, forensics refers to any scientific, technical, or specialized methods for investigating, analyzing, or solving problems, particularly within a legal context.
Forensic accounting involves investigating and analyzing financial records to uncover fraud, hidden assets, or irregularities. It is like private detective work for finances, combining accounting, auditing, and investigative techniques to review financial information.
Forensic accountants can review financial records, trace transactions, and provide detailed reports that can serve as evidence in court. However, these steps are rarely necessary when parties do not have substantial funds because—even if they uncover financial wrongdoing—it may not be enough to justify the expense of hiring the accountant.
In a high-asset divorce, the role of a Frisco forensic accountant can make it much easier to justify the expense since these are often more intricate than other divorces. Investments, business interests, and offshore accounts may require specialized expertise to evaluate. The more assets people have, the more difficult it can be to locate and identify all of them, but the more important it is to locate them to ensure an equitable distribution of assets.
Forensic accountants also help identify and value marital assets. Under a community property system, assets acquired during the marriage are generally owned equally by both parties and subject to division in a divorce.
In contrast, separate property—property owned before the marriage or received as a gift or inheritance—is not subject to division. Determining whether property is community or separate is one of the jobs of forensic accountants in high-asset divorces in Frisco.
A forensic accountant could be enlisted to uncover hidden property in a high-asset divorce case. Using investigative techniques, accountants can ensure all assets are known before the divorce is concluded. Some examples of hidden assets might include undeclared income, offshore accounts, or concealed business interests.
Forensic accountants look for red flags indicating potential concealment, discrepancies, or missing assets. They do so by examining financial statements, tax returns, and transaction histories. Withdrawals or transfers out of the community estate can be signs of an attempt to divert assets and hide them in the event of a divorce.
If one spouse owns a business or receives income from multiple sources, determining cash flow can be challenging. Forensic accountants identify all income streams and account for fluctuations in earnings, ensuring that support calculations reflect an accurate financial picture.
Forensic accountants can play a vital role in high-asset divorces. They can ensure that all financial matters are handled with precision and care, helping provide an equitable distribution of community assets.
When contemplating a divorce, you may wonder if a forensic accountant is necessary. Our dedicated family law attorneys could explain the role of forensic accounting in Frisco high-asset divorce cases and how they may benefit you. Schedule a consultation with a seasoned divorce lawyer today to learn more.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
