Imagine getting years of bank statements as well as tax returns, credit card records or statements from brokerages, wage reports, as well as business financial records during a divorce.
Technically, you’ve got details.
You may not be able to find many answers.
The matrimonial court case isn’t always easy because financial records are unavailable. The difficulty lies in determining which documents answer the most critical questions and when they’re not available.
Begin with the question, Not the Spreadsheet
A forensic accountant for white collar defense may approach financial discovery differently from someone simply organizing documents.
Let’s assume that the disagreement is over income that can be used to help. Tax returns are helpful, however, the owner of a company or a professional who is highly compensated can receive cash in a variety of ways. Bonuses and salary aren’t easy to evaluate depending on your circumstances.
If there are any assets which may be hiding, it’s important to keep track of the assets. Bank activity, transfers, spending patterns, and transfers between accounts may help to create an accurate financial picture.
It’s not about collecting every scrap of paper you can imagine. It’s to collect the information necessary to answer specific financial questions.
Discovering the Ownership of a Business is a Innovative Process
Privately-owned companies can be a valuable addition to the matrimonial search process.
A business valuation to be used in divorce in New Jersey requires appropriate financial details about the business. According to the nature of the transaction, an expert may need historical financial statements, tax information along with ownership records and other records that aid in knowing the company’s financial situation and formulating an assessment.
Incomplete information could create issues.
For instance, analyzing revenues without considering expenses only tells a small portion of the company’s financial story. One year’s performance might not be a good indicator of a company’s typical or exceptional performance.
SJS Forensics helps counsel by identifying relevant documents, preparing specific discovery requests as as reviewing the materials produced for accuracy.
Not Every Financial Difference Means That Something is Hidden
Unknown transactions may raise suspicions in divorce proceedings because they’re emotionally charged.
Transfers between accounts can seem suspicious until documents reveal the destination. A huge withdrawal could be due to an unrelated reason. On the other hand, a ordinary set of transactions might be worth further investigation when taken in combination.
It is vital to conduct an objective analysis since forensic accounting can’t start by concluding that there has an error.
The analysis should start with the records.
Better Information Makes Mediation more efficient
Financial experts typically appear in courtrooms, however the kind of analysis that can be useful could begin much earlier. When parties disagree about the value of their business, their income, separate property or unusual financial activity the need to clarify these issues prior mediation can help define what is actually contested.
SJS Forensics can help resolve complicated financial problems using forensic accounting experience with a settlement-focused approach.
Expert witness accountants of matrimonial disputes must be able communicate their findings clearly to attorneys and non-accountants.
The objective is to minimize the amount of uncertainty
Even a divorce could include thousands of financial transactions that have been collected over a long time. Just putting them in folders doesn’t create financial clarity. There is still a need to decide what the documents establish in the first place, what’s not yet answered, and what additional information might be needed.
That’s the benefit of the forensic financial analysis. It’s not the goal to complicate divorce proceedings by adding paperwork. The goal is to understand a complex financial position and slowly decrease the number of unanswered questions.
