What is the role of a forensic accountant in divorce?
One of the most complex parts of a divorce is the process of discovery, where all financial information is assessed so the court can make a decision on matters such as the division of assets, child support, or spousal maintenance. Discovery is usually the most lengthy part of the divorce because financial information can quickly become complex.
Unfortunately, in some situations, one of the spouses may be found to have been dishonest about their finances when filling out their statement of net worth. When this is the case, hiring a forensic accountant may be necessary. A forensic accountant will conduct an investigation into the true finances of the individual in question. The forensic accountant can create reports about their findings in the investigation and testify at a deposition to determine whether the person was lying or trying to hide funds from their spouse. The investigation usually looks into whether the expenses of the individual line up with and are feasible in relation to what the individual claims their income is.
It is important that when you are completing a statement of net worth, you are totally honest about your income, expenses, debts, and liabilities. So many factors of a divorce rely on what is found in the discovery phase. If a forensic accountant gets involved and finds you were not truthful, many of the factors of the divorce may not be ruled in your favor. You may also find yourself in additional trouble with the Internal Revenue Service which can result in serious legal trouble.
If you need assistance filing for a divorce, contact an experienced divorce attorney today who can provide you with assistance.
Robert Pollack is an experienced divorce and family law attorney in Long Island, New York. Contact The Pollack Law Firm, P.C., to set up a free initial consultation.