Why Divorce Lawyers Leverage Forensic Accountants

Divorce involves high-stakes financial decisions. Property division, spousal support, and child support determinations carry serious implications. Forensic accountants can help lawyers advocate for favorable and equitable outcomes in these areas.

One collaboration area involves identifying and valuing all marital assets. Lawyers engage forensic accountants to employ their sophisticated asset-tracing techniques. Uncovering intentional or inadvertent non-disclosures of property prevents inequitable division. Forensic accountants also appraise assets at current fair market values.

For spousal and child support calculations, lawyers need to establish accurate income levels. Forensic accountants dig deep into financial records to quantify total income from all sources. This includes side businesses, fringe benefits, deferred compensation, and concealed transactions. Thorough income analysis supports realistic support awards.

Allegations of financial misconduct may also arise during divorce. Forensic accountants serve as impartial financial investigators on behalf of lawyers. Findings of hidden income or assets can adjust negotiations appropriately. These insights also strengthen legal arguments in court.

Another key area is business valuation when divorcing spouses' own family companies. Forensic accountants evaluate the company’s finances to generate an objective appraisal. They also assess shareholder compensation compared to market norms. This informs the division of assets and income determinations.

Meticulous documentation of the marital lifestyle provides further justification for alimony requests. Forensic accountants reconstruct detailed spending analyses that demonstrate lifestyle costs for lawyers.

Forensic accounting reduces subjectivity by uncovering financial facts. This helps lawyers advise and negotiate more confidently towards equitable settlements aligned with clients’ best interests. Impartial forensic analysis also lends credibility in court when financial matters are disputed.

By leveraging forensic accountants’ specialized skills, divorce lawyers can focus on legal implications rather than untangling financial complexities. This complementary partnership leads to favorable case outcomes based on objective financial data rather than emotions. For contested or high net worth divorce cases, retaining a forensic accountant is a prudent investment.