Imagine having years of bank statements and tax returns, credit card information or statements from brokerages, wage reports, and business financial documents when you divorce.
Technically speaking, you now have details.
Practically speaking, you might have a few questions.
Financial records may not always be available but this shouldn’t make matrimonial disputes more difficult. Sometimes the issue is deciphering which documents can answer the questions which are relevant and being aware of the crucial elements that are still missing.
Begin with the query Not the spreadsheet
A forensic accountant working on divorce in New Jersey may approach financial discovery differently from someone simply organising documents.
When the issue is about the income available to support. A tax return is useful however, the owner of a business or a professional with a high level of compensation might receive money in many ways. The process of calculating bonuses and salaries can be difficult to determine dependent on the circumstances of the individual.
If there is a question about assets that may not be disclosed, different records could be relevant. Transfers, bank activity, spending patterns, and movements between accounts may help to create an overall picture of financial health.
It’s not about accumulating every piece of paper you could imagine. The goal is to collect the documents necessary to answer certain financial questions.
Business Ownership Changes the Discovery Process
Privately owned businesses can be a beneficial supplement to the matrimonial search process.
Performing business valuation for divorce in New Jersey requires appropriate financial information about the company. A valuation expert might need historical financial statements along with documents regarding ownership, tax records and other documentation based on the agreement.
Incomplete information could cause issues.
If you only look at the profits of your business and do not take into account expenses, it is only a small part of the financial picture. In the same way, looking at a single year may not reveal whether the performance is typical or unique.
SJS Forensics helps counsel by finding relevant documents, preparing specific discovery requests as as reviewing documents to ensure accuracy.
Even if a difference in the financials isn’t significant however, that does not mean that there was a cover-up.
Unknown transactions can easily raise suspicions in divorce proceedings because they can be emotionally charged.
The purpose of a transfer may not be determined until the records are reviewed. The large amount of money withdrawn could be an unrelated reason. However, a routine sequence of transactions may warrant an examination closer when taken together.
The objective analysis is important because forensic accounting should not begin with the assumption that there was a violation.
Records are the best starting point for analysis.
Mediation may be more effective when you have more relevant information
Financial experts are often seen in courtrooms, but the kind of analysis that can be useful could begin much earlier. If parties aren’t in agreement about the value of their business, their the value of income, property that is separate or unusual financial activity Clarifying those issues prior to mediation can help clarify what’s being argued.
SJS Forensics can help resolve complicated financial issues by combining accounting expertise from forensic experts with a settlement-focused approach.
When testimony is necessary an expert witness accountant in matrimonial litigation will be able to understand the analysis that underlies it and explain the details to attorneys, mediators, judges, and other non-accountants.
The aim is to reduce the unknowns
The financial transactions of many years are often accumulated during an intricate divorce. However, this doesn’t mean you can get financial clarity just by making the necessary records. The documents need to be reviewed to discover what they show, what is still unanswered or if additional information is needed.
That’s the practical value of the forensic financial analysis. The goal is not to complicate divorce proceedings by adding additional paperwork. The goal is to lessen the amount of unanswered financial questions when dealing with a complex case.
