4 reasons you may need a forensic accountant during divorce

Financial matters often become the most contested part of divorce. When one spouse suspects the other is hiding income or manipulating asset values, a standard financial review may not be enough. In these cases, a forensic accountant can help uncover key facts that influence the outcome of a divorce.

The role of a forensic accountant is not limited to identifying hidden accounts. These professionals provide insights into business valuations, tax implications and financial activity that may otherwise be overlooked. Their input can support a more accurate and fair division of property.

1. Uncovering hidden assets

Forensic accountants use auditing tools and analysis techniques to identify assets a spouse may be trying to hide. This includes reviewing bank statements, tax returns and transactions to locate accounts or holdings not initially disclosed. In some cases, they may uncover signs of intentionally understated income or false liabilities.

2. Valuing complex financial holdings

When a marriage involves business ownership, investments or high-value property, determining each asset’s true worth can be challenging. A forensic accountant can evaluate business performance, asset portfolios and debts to determine current and projected value. These figures are critical for an accurate distribution of the marital estate.

3. Assessing tax implications of asset division

Transferring or selling assets during divorce may create tax obligations that significantly reduce their real value. A forensic accountant helps identify potential liabilities such as capital gains tax or penalties, allowing the parties to plan property division in a way that minimizes long-term financial strain.

4. Providing court-ready documentation

If a case proceeds to court, a forensic accountant can compile findings into clear reports and provide testimony that supports or challenges financial claims. Their independent, data-driven analysis often carries weight in contested divorce proceedings and supports more informed judicial decisions.

When property division involves large sums, business interests or suspected dishonesty, the perspective of a forensic accountant can be invaluable. Their role in examining financial records and clarifying asset values helps strengthen claims and support more balanced outcomes.

In such situations, seeking legal guidance can help determine when to involve a forensic accountant and how their work may support your position in the divorce process.

Archives

FindLaw Network