Imagine receiving all of your financial records in a divorce, including years’ worth of bank statement. These include taxes, credit cards or brokerage reports, payment statements, as well as other business financial records.
You now have the information.
In reality, you could be unable to answer the question.
Financial records might not be always available, but that doesn’t mean it makes matrimonial issues more complex. The difficulty lies when you need to find the documents that answer the most critical questions, and when they’re absent.
Start with the question, not the Spreadsheet
A forensic accountant for white collar defense may approach financial discovery differently from someone simply organizing documents.
In the event of a dispute, there is the amount of income that can be used to support. A tax return review could be beneficial, however a business owner or highly compensated professional could receive cash through various channels. Salary and bonuses can be complicated to analyze depending on your circumstances.
If there is a question about assets that may not be reported, various records could be relevant. Transfer patterns, bank activity or spending patterns as well as movement between accounts are all elements that can help you develop an overall financial picture.
It’s not about collecting every document you can think of. It’s essential to collect the necessary information to answer questions about finances.
The process of discovering the ownership of a company is a New Process
A privately held company can be a significant addition to matrimony discovery.
A business valuation to be used in divorce in New Jersey requires appropriate financial details about the business. A valuation expert may require the historical financial statements along with tax records, ownership details as well as other documents, depending on the type of engagement.
Problems can arise from incomplete information.
In other words, if you only look at revenues and leave out expenses, it is impossible to get the complete story of the financial performance of a firm. Also, analyzing a single year may not reveal whether performance is typical or unusual.
SJS Forensics assists counsel by providing relevant documents, aiding formulate targeted discovery requests, and evaluating documents produced to ensure fullness and accuracy.
Not Every Financial Difference Means Something Was Hidden
Divorce is a difficult and emotional process, and a divorce that isn’t well-known could quickly raise suspicion.
Transfers between accounts could appear suspicious until the appropriate documents reveal the destination. The large amount of money withdrawn could be an unrelated reason. A seemingly mundane series of transactions could be worth further investigation when viewed as a whole.
It is vital to start with an objective analysis, as forensic accounting should not begin by assuming that there was some kind of error.
Records should be the starting place for analysis.
Mediation is more effective With Better Information
Financial experts often appear in courtrooms, however the kind of analysis that can be useful can be done much earlier. Clarifying the issues in dispute before mediation is helpful when parties disagree over business value or income, separate property or unusual financial activity.
SJS Forensics can help resolve complex financial questions by combining forensic accounting knowledge with a settlement-focused approach.
When it is necessary to testify for matrimonial litigation, a certified witness accountant in matrimonial disputes must be able to take the underlying analysis and explain it in a clear manner to attorneys judges, mediators as well as other non-accountants.
The Objective is to Limit the Unknowns
Financial transactions from many years are often accumulated during a complicated divorce. Just putting them in folders does not provide clarity on financial matters. One must still determine what they are as well as what’s left unanswered and which additional information may be necessary.
That’s the practical value of the forensic analysis of finances. It’s not intended to complicate a divorce by adding more paperwork. The goal is to understand a complex financial position and slowly decrease the number of unanswered questions.