Divorce often creates a severe level of stress and anxiety. Even the partner who initiates the divorce may experience a sense of great loss or failure. Yet, the parties involved in the divorce are required to analyze their financial affairs more deeply than they usually do or perhaps ever have done in the past. Often, one spouse has managed the family finances for an extended period of time with little or no involvement from her or his partner. Consequently, preparing for the financial aspects of the divorce may be difficult or even overwhelming. The process is always emotionally charged and the accountant can add focus and productivity to every situation.
Do you or your clients need an accountant or a forensic accountant to assist with the divorce?
An accountant with matrimonial expertise may assist you or your clients in the following ways during the course of the divorce:
· Compiling a list of assets owned and debts owed;
· Determining which assets were owned prior to and acqured during the marriage;
· Assist in the preparation of the Case Information Statement (CIS)
· Creating an inventory of investment assets, such as investment portfolios, pension benefits, stock options, life insurance;
· Determining the value of such assets and debts;
· Determining the marital standard of living through a detailed analysis of receipts and disbursements (known as a ‘Life Style Analysis”) to assist in computing the amount of maintenance (alimony) required;
· Provide tax planning before, during and after the divorce as well as the tax impact of the divorce property settlements, child support and maintenance arrangements.
Then, when is a forensic accountant required?
A forensic accountant can provide all of the above services, but is also trained and experienced to investigate complex financial situations. If a business or professional practice (such as a legal or medical practice) was created or enhanced during the course of the marriage, a forensic accountant can assist in the following ways:
- Analyze in detail the accounting records of a closely held business or professional practice;
- Determine if a valuation of such business is warranted;
- Determine whether an increase in the value of the business was due to active or passive influences;
- Perform the valuation according to standards proscribed by the profession.;
- Stand ready to testify in court if the possibility of litigation arises.
The forensic accountant can also assist in other financial investigations such as:
- Discovering assets that are either intentionally or unintentionally hidden;
- Assess the true income of the parties in non-traditional employment situations, including the value of benefits and perquisites
- Trace the flow of money, sometimes unrelated to a business.
Dushkin + Jennings are certified public accountant with individual expertise and experience of over 25 years in accounting and analysis. We provide all of the above services on client-by client basis. As every client and situation is unique, we do what is needed but will not waste your time and money with unnecessary procedures.
