Divorce can be difficult and complicated. Things can become especially complex when it comes to finances. There are some instances in which one may attempt to keep some assets hidden during a divorce. If you suspect your spouse of hiding assets or engaging in other unethical practices, you may want to hire a forensic accountant to look into it. This occurs most during high net worth divorces, but that is not the only time in which one would require the help of a forensic accountant. Read on for more information about forensic accountants, what they do, and how they can help you during your divorce.
What is a High Net Worth Divorce?
A high net worth divorce occurs when the divorcing couple has a combined net worth of $1 million or more. In this event, parties often feel like there is a lot at stake. One or both parties may attempt to hide assets in an attempt to pay less or receive more. Hiding assets is considered fraudulent behavior. If it is revealed that one is hiding assets, he or she will be reported to the IRS. In this event, an investigation may be prompted, creating a slew of legal trouble, on top of the impending divorce.
What Does a Forensic Accountant Do?
If you suspect that your spouse is hiding assets, you can 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. Additionally, a forensic accountant can uncover 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
That being said, forensic accountants can be useful in many other ways. For example, a forensic accountant can valuate tangible items, including art, jewelry, antiques, and collectibles.
If you are interested in working with a forensic accountant, contact our firm today. We are here to walk you through the steps and help you with every aspect of the legal process.
We understand how stressful a divorce can be, and we are here to help the process go as quickly and easily as possible. If you have any questions or concerns about a Massachusetts divorce, reach out to our firm to speak with a skilled and dedicated divorce attorney.
Contact our 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.