During a divorce, you may need to enlist the help of experts. For example, many people work with expert witnesses, forensic analysts, and more. Read on to learn more about the role of forensic accountants in a Massachusetts divorce.
Common ways assets are hidden?
Unfortunately, it is not uncommon for a party to attempt to hide assets during a divorce. There are a number of different ways assets can be hidden during a divorce. This can include:
- Overpaying on taxes so they can get the money back in a refund the following year
- Asking an employer to delay promotion or raise until after the divorce
- Delaying the receipt of a large commission from work
- Transferring assets to a friend or a separate bank account
What does a forensic accountant do?
If you suspect that your spouse is hiding assets, you may need to enlist the help of a forensic accountant. A forensic accountant can determine a party’s true net worth. This can be done by scrutinizing business records, bank accounts, tax returns, and investment portfolios. A forensic accountant can uncover other unethical practices such as:
- Creating fake debt
- Padding payroll
- Under-reporting income
- Overpaying creditors
- Transferring assets to dummy corporations
- Purchasing expensive items with undeclared cash
Forensic accountants can be useful in many other ways. For example, a forensic accountant can valuate tangible items, including art, jewelry, antiques, and collectibles.
How can I protect my assets?
Hiding assets is never a good idea. If you are caught hiding assets, you can find yourself in serious legal trouble. Additionally, any evidence of hidden assets will need to be reported to the IRS. One of the best ways to protect your assets during a divorce is with a prenuptial agreement. A prenuptial agreement is a document that declares how your and your future spouse’s assets will be divided in the event that the marriage ends due to separation, divorce, or death. If you and your partner did not create a prenup and later change your minds, you can create a postnuptial agreement. This is the same type of document, but it is created after the wedding, rather than before.
If you have any questions or concerns about working with a forensic accountant during your Massachusetts divorce, our firm is here to help. Reach out today to speak with an experienced attorney.
Contact our experienced Bristol County firm
For over 30 years, The Law Offices of Cynthia L. Hanley, P.C. has provided quality legal support and representation for clients in Bristol County and all of Massachusetts. Our firm’s experience eases the stress of clients while providing the legal services they deserve. If you need help through a contested divorce, contact The Law Offices of Cynthia L. Hanley, P.C. for a consultation today.