Imagine having years of bank statements, tax returns, credit card records as well as brokerage statements, pay reports, and business financial documents during a divorce.
Now you have the data.
In reality, you could have some questions.
It’s not always straightforward because financial records are unavailable. Sometimes, the problem is determining which documents answer the queries that actually matter and being aware of the crucial elements that aren’t yet available.
Start With the Question, Not the Spreadsheet
A forensic accountant for white collar defense may approach financial discovery differently from someone simply organizing documents.
Imagine a situation where the dispute is about the income that is available to help. It is helpful to review your tax returns, however professionals or business owners who receive high compensation may receive their compensation in different ways. Salaries, bonuses, distributions, and other forms of compensation may require further examination based on the situation.
In the event of not disclosed assets, other information may be required. Banking activity, transfers, spending patterns, as well as movements between accounts may help to create the complete picture of finances.
The point isn’t to collect every document that you can imagine. The aim is to gather the necessary documents to answer specific financial questions.
Finding the Ownership of a business is a New Process
The matrimonial search process could be improved by a private firm.
A business valuation to be used in divorce in New Jersey requires appropriate financial details about the business. According to the nature of the transaction the appraiser may require historic financial statements, tax information or ownership records, as well as other documentation relevant to understanding the business and developing an assessment.
Incomplete information could cause problems.
For instance, if you focus solely on the revenue, and do not consider expenses, it is impossible to determine the complete story of the company’s financials. A single year’s results may not be a good indicator of an organization’s normal or exceptional performance.
SJS Forensics assists counsel by finding relevant documents, assisting formulate targeted discovery requests, and evaluating documents produced to ensure the accuracy and completeness of the documents.
It’s not always the case that every financial difference means That Something is Hidden
A divorce is a difficult process, and an event that is unfamiliar can raise suspicions.
It is not always obvious which transfer was made. The sudden and large amount of withdrawals could be the result of a typical explanation. A seemingly mundane series of transactions could be worth a closer look when taken together.
It is essential to conduct an objective analysis because forensic accounting shouldn’t start with the assumption that there was a violation.
The documents should guide the analysis.
Mediation can be 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 prior to mediation can be helpful if two parties do not agree over the value of a business or income and separate property or other financial activities.
SJS Forensics combines forensic accounting expertise with a settlement-minded approach and can be a mediator to resolve complex financial issues.
When it is necessary to testify an expert witness accountant in matrimonial disputes should be able to comprehend the fundamental analysis and communicate it in a clear manner to attorneys mediators, judges, and other non-accountants.
The aim is to eliminate the unknowns
The financial transactions of many years could be recorded in the course of a complex divorce. Financial clarity isn’t achieved by simply placing records in folders. The records must be examined to determine what they reveal, what is still unanswered, or what additional information is required.
That’s the practical value of an forensic analysis of financials. It’s not our intention to complicate divorces by producing a huge pile of papers. It’s about tackling a complex financial situation and gradually reduce the number of questions left unanswered.