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Why your attorney may recommend a forensic accountant in your divorce

There’s never a good time to divorce. Doing so when you have means makes things particularly complex, especially if you accumulated a significant portion of what you have after you married. These assets may not be covered by any prenuptial agreement, which can put them up for grabs when it comes to dividing property.

It may be relatively easy to assign a value to most assets such as homes, cars and checking accounts. Doing so with rare ones or ones with fluctuating values such as collection, investment portfolio or family business may be a bit more challenging. Your attorney may recommend that you add a forensic accountant to your team to aid in assigning a value to these.

Business valuations

Determining your company’s value may be challenging if you and your business partners don’t generate a consistent amount of profit year or have a 50-50 profit-sharing agreement in place. You may have accounts payable that you haven’t addressed yet that may impact your bottom line. Your company may be projected to make more than it currently is, thus significantly impacting its bottom line. These are just some of the many factors a forensic accountant may consider when assessing your business’s value.

Financial portfolio valuations

Retirement accounts, insurance policies, investment properties and portfolios, trusts and similar financial instruments can also be challenging to value too. Not everyone understands stock options and what the related terminology means. A forensic accountant will understand these concepts and be able to explain the valuation of each.

Assessing the value of other assets

Collectibles such as antiques and artwork are often valuable, yet challenging to appraise. What you might assume is invaluable could be worth a significant amount of money. It could affect the division of assets in your divorce case.

While you envision the process of dividing up assets with your spouse as relatively straightforward, it’s not. What you have may be worth more (or less) than you think that it is. There may be tax implications associated with making certain choices. You owe it to yourself to align yourself with professionals who understand the ins and outs of high-asset divorces. This will aid you in making financially prudent choices in your case.