The role of forensic accounting in high-asset divorces

On Behalf of | Jul 11, 2024 | DIVORCE - High-Asset Divorce |

When a marriage involves a significant amount of assets, property division during a divorce goes beyond simply dividing the assets and debts. This kind of divorce often involves complex financial portfolios, such as businesses, real estate, investments and retirement accounts.

With so much at stake, having a complete and accurate picture of your financial landscape is crucial. This rings especially true in New Jersey, where the law divides marital assets and debts based on what is fair and reasonable.

But what happens when one spouse tries to conceal assets or manipulate financial records? Can you trust you are getting a fair share in the divorce settlement? That is where a skilled forensic accountant can help.

What is a forensic accountant?

Forensic accounting is a specialized field that goes beyond traditional accounting. When you are navigating the complexities of a high-asset divorce, a forensic accountant can act as your financial detective. Their aim is to provide a clear financial snapshot of your marriage and help you ensure transparency and fairness in property division.

What role do they play in high-asset divorces?

Forensic accountants are crucial in high-asset divorces, helping you ensure a fair settlement. They perform three key tasks:

  • Uncovering hidden assets: Sadly, it is not rare for one spouse to attempt concealing assets to avoid dividing them in a high-asset divorce.  A forensic accountant’s expertise can help uncover this hidden wealth, which may include bank accounts, shell companies and other financial instruments that might slip past untrained eyes.
  • Identifying marital assets: By analyzing cash flow and tracing transactions, these experts can help you identify marital assets and pinpoint your marriage’s true income. This is especially important in cases where one spouse attempts to transfer assets to avoid division.
  • Valuing complex assets: Whether it is a business, real estate or investments, complex assets require specialized expertise to accurately value. Forensic accountants use techniques like business valuation, asset appraisal and financial modeling to determine the value of these assets.

By engaging a forensic accountant, you can navigate the complexities of your divorce with confidence.

Ensuring fairness in your divorce

As you face the difficulties of your divorce, remember that a forensic accountant can be a valuable ally in ensuring a fair and equitable settlement. They can provide you with the financial clarity and confidence you need to move forward.