When Do You Need a Forensic Accounting Expert in Divorce Matters? By Leah Wietholter In our ten years in business, Workman Forensics has been asked to provide expert services in many divorce matters. The most common services requested are the following: • Find hidden assets. • Trace funds to determine pre-marital versus marital assets. • Uncover business accounting practices that decrease the value of the company. As an attorney, having a clear understanding of the forensic accounting services needed for your case can help you and your clients save time and money. Hire an expert forensic accountant Hire an expert forensic accountant when there are issues of tracing sources of funds or preparing for a business valuation. Tracing sources of funds to determine whether financial accounts are marital or should be apportioned is a job for an expert forensic accountant who can also testify, if needed. There are methodologies, considerations, and calculations that are best explained by an expert who specializes in this area. When a divorce case requires the division of the value of a business, an expert forensic accountant creates a lot of value – especially in a closely held, family
business. An expert forensic accountant can analyze the accounting records of a company for changes in the company financials that would reduce the valuation. Other cases require evaluation of commingled personal and business assets and expenses. This analysis is then provided to a business valuation expert to calculate the value to be divided. Having an experienced forensic accountant to uncover and interpret these details is vital to ensuring the business valuation expert is working from the best set of facts available. Hire a consulting forensic accountant Finding hidden assets in a divorce matter does not necessarily require the expertise of a forensic accountant. Although many experienced forensic accountants know the most common places to look, and have the tools to make the process more efficient and smooth, they are not performing “CSI” magic to locate the assets. Contrary to the belief of many clients, there is no legal database that forensic accountants or private investigators can search via Social Security number to retrieve a list of all associated bank accounts. However, using logical, structured processes, forensic accountants can use information gathered from the client’s story, financial account records, and public records to construct a well-organized list of assets. Be Your Own Factfinder in Divorce Cases While studying the processes used in my practice over the last ten years, I have realized that the finding hidden assets part of our services does not actually require expertise. It requires logic, problem solving, and a lot of organization. The basic process looks like the following: • Create a timeline. Although it may seem simple, a timeline listing dates of marriage, divorce filing, property acquisitions, business changes, et cetera is one of the most useful places to start. As the case is
22 Tulsa Lawyer