How the skills of a forensic accountant may help you in divorce

On Behalf of | Apr 5, 2022 | High Asset Divorce

You grew accustomed to the lavish lifestyle afforded to you by your spouse’s career as a business executive. But, in time, your relationship eroded, and you did not dare ask your spouse certain questions because you were afraid of the answers. But he likely would not tell you them, anyway.

You are now faced with confronting a marriage foundation infected with deceit. Your spouse has kept many things from you. Among them are the assets that he has hidden away. Now, that you know that divorce will happen, you need to turn to a forensic accountant — an ally who can peel away the layers of financial deceit.

Underreported income and expensive purchases

By analyzing financial records, a forensic accountant will uncover the many ways that your spouse has attempted to hide assets. In his or her career, this professional has seen every dirty trick when it comes to financial deceit.

Working alongside an experienced attorney, a forensic accountant will discover a number of questionable and illegal acts such as:

  • Underreported income: In analyzing tax returns, a forensic accountant will shed light on how someone attempts to avoid paying taxes while also hiding assets.
  • Phony debt: Enlisting the help of friends and family, your spouse makes loan “repayments” to them. However, that debt never existed.
  • Overpayments to creditors: These extra payments build up and create balances. Once the divorce is final, your spouse hopes to cash them out.
  • Payroll fraud: Some business leaders may resort to falsifying expenses as well as fictitious and ghost employees who are on the payroll but either do not exist or perform no work.
  • The transfer of assets to dummy corporations: These non-existent companies serve as an umbrella to deceive people and, more importantly, hide assets.
  • Outlandishly expensive and questionable purchases: Hidden cash may pay for luxury items such as cars, jewelry and real estate as well as international trips and excursions made with a paramour.

Certain people go to extremes to prevent their spouses from securing their rightful portion of assets. You do not want them to get away with this illegal behavior.

A good ally at every step

A person commits fraud when he or she hides assets. If the hiding of assets is serious enough, a judge may sentence the offender – a former spouse — to jail. And judges may base some of their conclusions on the findings of a reliable sleuth known as a forensic accountant. Such a professional is good to have on your side.