Imagine having years of financial documents like bank statements taxes statement from credit cards, Payroll reports and brokerage statements.
Technically, you have now information.
You might still be unable to locate a solution.
Financial records might not always be available, but this shouldn’t make matrimonial problems more complicated. Sometimes, the difficulty is in determining which documents answer the questions that actually matter and recognizing when important pieces are still missing.
Start with the query rather than 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 funds that are available to support. Tax returns are helpful, however, the owner of a company or a professional who is highly compensated can receive cash in a variety of ways. Salaries, bonuses, distributions, and other forms of compensation may require further investigation based on the particular circumstances.
If the issue involves not disclosed assets, other records may become relevant. Bank activity, transfers and spending patterns could be utilized to build a complete picture of financial activity.
It’s not about accumulating every document you can think of. It’s about obtaining the documents needed to answer specific financial questions.
Business Ownership Modifies the Discovery Process
Privately owned businesses can be a beneficial supplement to the matrimonial search process.
A business valuation to be used in divorce in New Jersey requires appropriate financial information about the company. An expert in valuation may need historical financial statements, tax records, ownership details and other documents depending on the contract.
Uncompleted information can cause problems.
For example, if you solely focus on revenue and ignore expenses, it is not possible to know the full story of the financial performance of a firm. A single year of performance can be deceiving.
SJS Forensics helps counsel by finding relevant documents, preparing specific discovery requests as as examining the documents produced to ensure the accuracy of the documents.
Some financial differences do not necessarily mean that there’s something in the shadows.
Unknown transactions can easily raise suspicions during divorce proceedings as they can be emotionally charged.
It’s not always easy to determine what the reason for a transfer done. A significant withdrawal may have an ordinary reason. In contrast, a seemingly simple set of transactions could be worthy of closer examination when taken together.
It is essential to conduct an objective analysis because forensic accounting should not begin with the assumption that misconduct took place.
The analysis should begin with the documents.
Mediation is more effective With Better Information
Financial experts are typically used in courtroom testimony however, they can be beneficial much earlier. The ability to clarify the dispute prior to mediation is beneficial when parties disagree over business value or income, separate property or unusual financial activity.
SJS Forensics combines forensic accounting expertise with a settlement-minded approach and participates in mediation to address complex financial issues.
An expert witness accountant who is involved in matrimonial disputes must be able, if needed, to present the analysis to lawyers, mediators and judges, as well other non-accountants.
The goal is to reduce the uncertainty
A divorce that is complex can include thousands of financial transactions over time. Financial clarity is not achieved by simply putting records in folders. It’s up to the person to decide which records are required, which questions remain unanswered, and the information needed to be added.
This is the value that can be realized from the forensic analysis of finances. The goal isn’t to make divorce more difficult by producing another enormous stack of paperwork. It’s best to gradually reduce the amount of questions that remain unanswered in a financial situation that is complex.