Forensic Accountants and Divorce

Forensic accounting is a field that specializes in engagements resulting from anticipated or actual disputes or litigation. In other words, forensic accountants investigate financial records and behavior. Certified forensic accountants (CRFAC) can be witnesses in a court of law and often give expert evidence in trials. In divorces, therefore, sometimes forensic accountants are called in to investigate marital and separate assets.

Property division can be extremely complicated, especially since the couple will have to split all marital assets equitably. For couples with complex financial portfolios, they could need an expert to investigate completely. Likewise, if either spouse is hiding some financial assets or expenditures from the other, a forensic accountant can sniff it out.

These specialists are trained to examine both personal and business financial records for what they show and what they don’t show. For example, it might appear suspicious when gross profits fall as gross income rises over multiple periods. This could indicate a spouse is funneling money into another account or spending money on another person in an affair.

A skilled forensic accountant can detect some of the following practices:

  • Underreporting income
  • Overpaying creditors
  • Payroll padding
  • Faking credit debt
  • Transferring assets to dummy corporations
  • Purchasing expensive items with secreted funds

Hiring a forensic accountant may seem like overkill, but if you stand to lose a substantial amount of income during the divorce, you want to ensure you do your best to account for all finances. It can also prevent your spouse from using delaying tactics during the divorce in an attempt to make you waste money.

If you need help filing for a divorce, talk to our experienced Clearwater divorce attorneys. We understand that family law cases can be overwhelming and emotionally draining. Our experienced professionals help clients through the divorce process as favorably as possible. K. Dean Kantaras, P.A. is led by a board-certified family law specialist, which means he’s an expert in his field. Contact us about your case and tell us about your situation today.

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