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Why people preparing for divorce often hire forensic accountants

On Behalf of | Nov 12, 2024 | Divorce

Some people approach divorce with a perspective that doesn’t serve their well-being. They have many uncomfortable emotions that can prevent them from making rational decisions that prioritize their long-term goals and needs. For example, they may focus on getting the process over quickly and keeping the cost as low as possible.

While avoiding unnecessary expenses is a smart decision, some divorce expenses pay long-term dividends. In all but the simplest of cases, legal representation can be invaluable during a divorce. People may also require the support of other professionals, including certain types of financial professionals. Particularly when there are suspicions about financial misconduct or concerns about dividing a complex marital estate, divorcing spouses may want to consider bringing in a forensic accountant.

What do forensic accountants do?

Accountants are professionals who help manage financial matters ranging from income tax filings to business payroll matters. Forensic accountants are specialists who analyze complex financial records to look for signs of misconduct and other issues. They trace income and assets and look for discrepancies that may indicate fraud or misconduct. Forensic accountants frequently help in criminal cases related to fraud. They can also be a worthwhile addition to a divorce team.

How can a forensic accountant help?

Those who worry about receiving a fair divorce outcome can work with a forensic accountant to better understand their marital estate. Forensic accountants may be able to identify signs of hidden assets. They can potentially track down digital resources or secret offshore financial accounts that a spouse never disclosed.

They may also be able to identify signs of dissipation, including inappropriate spending or money wasted on an extramarital affair. The resources or wastefulness they identify and quantify can have a direct impact on the outcome of property division proceedings. The money spent on a forensic accountant can pale in comparison to the benefits derived from their analysis of household financial records.

Partnering with the right professionals during a divorce can help people achieve the best possible outcome. People who worry about spousal misconduct or who are unfamiliar with their marital finances may derive particular benefits from conducting a thorough financial review with the help of a forensic accountant. Those who focus on fair and accurate financial outcomes may have an easier time rebuilding their lives after a divorce disrupts their lives.