Imagine receiving all of your financial records when you get the divorce process, including years’ worth of bank statements. This includes taxes, credit cards and brokerage reports, as well as payroll statements, as well as other business financial records.
Technically, you now have information.
There are a few possible solutions.
It’s not always easy because financial records are unavailable. The problem lies in determining which documents answer the most critical questions and when they are absent.
Begin with the question Do not start with the Spreadsheet
Financial discovery may be approached differently by a forensic accountant New Jersey than someone who simply organizes documents.
Imagine a situation where the dispute is about money that can be used to support. Examining tax returns is a good idea, however an owner of a business or a highly compensated professional could get money via a variety of ways. Compensation and bonuses aren’t easy to evaluate according to your particular circumstances.
If there are any assets that may be hidden, it is important to track the assets. Bank activity, transfers and spending patterns could be utilized to build a complete financial picture.
It’s not about collecting every single document you could think of. It’s to collect the information required to answer specific financial questions.
Business Ownership Changes the Discovery Process
Privately held companies are a great in the matrimonial process.
In order to perform an assessment of a business’s worth in New Jersey, you will require the proper financial information. A valuation expert might require the historical financial statements along with tax records, ownership information and other documentation based on the contract.
Incomplete information could cause issues.
In other words, looking at revenue without understanding expenses tells only part of the company’s financial story. A single year’s worth of data may not show whether performance is typical or unique.
SJS Forensics provides assistance to counsel by identifying documents relevant to the preparation of a specific discovery request and examining documents for the accuracy and completeness.
Even if a difference in the financials is small is not a sign that something was hidden.
Divorce is an emotional procedure, and a transaction that’s not familiar can create suspicions.
It’s not always easy to determine which transfer was made. The large amount of money withdrawn could be an unrelated reason. A seemingly routine set of transactions may be interesting at when taken in context.
The objective evaluation is essential as forensic accounting cannot begin by assuming that there’s some kind of misconduct.
The records should be the starting point for analysis.
Mediation is more effective with better Information
Financial experts often appear in courtrooms, but the type of analysis that is beneficial can start much earlier. Understanding the issue before mediation is helpful when two parties do not agree over the value of a business or income distinct property, or other unusual financial practices.
SJS Forensics is a forensic accounting firm that combines expertise in forensic accounting with an attitude of settlement. They are also able to participate in mediations for financial issues.
When testimony is necessary, an expert witness accountant for matrimonial litigation must be able to take the underlying analysis and explain it clearly to attorneys, mediators, judges, and other non-accountants.
The objective is to decrease the Unknowns
Financial transactions from many years are often accumulated during the course of a complex divorce. Simply putting those records into folders isn’t enough to create financial clarity. The documents need to be reviewed to determine what they reveal and what questions remain unanswered, or if additional information is needed.
That’s the benefit of the forensic analysis of finances. The objective isn’t to make divorce more difficult through the creation of a huge stack of papers. You want to slowly reduce the number of unanswered questions you have in a financial situation that is complicated.
