What documents must be obtained in a divorce proceeding when your forensic accountant needs to evaluate and investigate the income of the parties? In the below video, Tracy Coenen lists some of the basic documents that are needed to analyze wages, self-employment income, and investment income.
This article was originally printed in the ABA Section of Family Law eNewsletter, July 2012
A divorcing couple has a premarital agreement, so everything is simple when it comes to dividing assets and paying maintenance, right? Of course not. Premarital agreements are rarely simple, and they become even more complicated when the language in the agreement is imprecise.
This high net worth divorce case study provides some important insights into the process of completing a lifestyle analysis and calculating support. In this case, an imprecise premarital agreement led to problems in analyzing the marital lifestyle, excluding certain questionable expenses, and calculating future needs.
The Forensic Accounting Deskbook by Memphis divorce attorney Miles Mason is billed as a guide to financial investigations for family lawyers. This designation sells the book short. The book is an outstanding guide to financial analysis and forensic accounting not only for attorneys, but also for accountants and fraud investigators. Professionals at any level – – from beginner to seasoned expert witness – – can learn much from this book.
The book is exceptionally well organized, with numerous guides and examples that can be used as templates or guides for your current cases. The Forensic Accounting Deskbook begins with an introduction to forensic accounting and engaging the right CPA for your case. It then moves into accounting for lawyers, which is an excellent overview. Many of the common accounting buzzwords and catch phrases are defined, and knowing what these mean will be invaluable to the attorney. The more you know about the financial issues, the better you can advocate for your client.
When a party to a divorce or child support case is believed to be hiding income or assets, one way uncover proof of it is through a lifestyle analysis. Such an analysis is not only helpful in establishing the true income of the subject, it can also uncover inconsistencies which reflect negatively on the subject’s credibility.
One key piece of documentation that can help your case against someone who is concealing income or assets is a loan application. When borrowing funds for homes, cars, boats, or business investments, people are often required to disclose details of their personal finances. This usually includes disclosing monthly or yearly income, as well as the value of assets such as homes, vehicles, real estate, and business interests.