Divorces can be a challenging time for any couple. When there are substantial financial assets involved, the divorce becomes even more complex. In New Jersey, many people facing complex divorces turn to professionals who can help them navigate the financial aspects of their separation. One key professional in these situations is a forensic accountant. Forensic accountants play a crucial role in ensuring that the division of assets is fair, that financial misconduct is uncovered, and that the financial future of each spouse is secured.
Understanding the importance of forensic accountants in complex divorce cases can help individuals going through this process make informed decisions. This guide will walk through the role of forensic accountants in Tanya L. Freeman, Attorney at Law New Jersey divorces and why they are essential in helping families during difficult times. At, , we are here to guide you through the legal process and help you navigate the complexities of your case.
What is a Forensic Accountant?
A forensic accountant is a financial professional who uses accounting, auditing, and investigative skills to examine financial records in detail. Their job is to uncover hidden assets, evaluate the accuracy of financial information, and ensure that the numbers presented during divorce proceedings are correct. Forensic accountants are often called upon in divorce cases that involve high net worth or complex financial situations where one spouse may be suspected of hiding income or assets.
In the context of a divorce, their work focuses on analyzing each spouse’s financial situation, ensuring full transparency, and bringing clarity to all financial matters. This helps the court, attorneys, and the divorcing parties to make more informed decisions about the division of assets and support payments.
Uncovering Hidden Assets
One of the most critical tasks a forensic accountant performs is finding hidden assets. During divorce proceedings, especially in high-conflict cases, it is not uncommon for one spouse to try and hide certain financial resources to avoid sharing them. They may open secret bank accounts, underreport their income, or transfer assets to friends or family members.
More than an accomplished divorce and family law attorney, Tanya L. Freeman, is a consummate professional with a wealth of corporate and life experience. Known as a leader and strategist, Tanya L. Freeman was appointed by the Governor of New Jersey as Chair of the Board of Directors of the University Hospital in Newark, New Jersey. Tanya L. Freeman also presents among the ranks of public speakers. She captivates and inspires professional groups nationwide. "Tanya has the eloquence and oratory brilliance with the ability to forge deep connections with her listeners."
Tanya L. Freeman, Attorney at Law
Managing Partner of the Family Law Practice at Callagy Law
Forensic accountants have the tools and knowledge to investigate these kinds of financial activities. They use their skills to follow paper trails, examine financial records, and determine if there are any discrepancies that need to be addressed. Without the involvement of a forensic accountant, it can be easy for one spouse to walk away with more than their fair share of the marital assets, leaving the other spouse in a financially vulnerable position.
By carefully investigating, forensic accountants can help ensure that all assets are accounted for and that each party receives a fair share during the divorce settlement.
Valuing Complex Assets
In many divorces, the marital property may include more than just a home, vehicles, and bank accounts. Couples might own businesses, real estate investments, or valuable collections, all of which need to be properly valued to ensure a fair division of assets. Valuing these types of complex assets can be challenging without the right experience.
Forensic accountants play an essential role in valuing these complex assets. Their understanding of different types of assets allows them to assess the true value of each one. For example, if a couple owns a business together, the forensic accountant will examine the company’s financial statements, assets, and potential future earnings to provide an accurate valuation.
With this detailed understanding, the court can make more informed decisions about how to divide these assets between the divorcing spouses. This ensures that the financial settlement is equitable and that each party receives the appropriate portion of the marital estate.
I was very fortunate to find Tanya online during an urgent family matter. I was able to speak with her on our situation and she immediately jumped on the case the same day. I was impressed at her knowledge and her team as they were able to answer questions on the spot and navigate through an unpleasant situation. Her honesty and responsiveness have made this process much easier, and the support she has provided has truly gone above my expectation of a family law firm. This is truly an exceptional firm & I would highly recommend.” - Lydia Martinez My father recently hired Tanya Freeman; Family Law Attorney and her team as a replacement to handle his divorce which has been going nowhere for over 3 years with a different attorney. Tanya and her team have done so much within just a few months for his trial and has given my father a new sense of hope. The team is always quick to respond to any questions. The case is still ongoing, however, my father has newly restored confidence that he will be treated fairly and with his best interest in mind. We definitely recommend Tanya Freeman; Family Law Attorney." - Molly Howard Tanya is an outstanding attorney! Her attentiveness to detail and willingness to be honest with her clients means you’re going to get the best possible outcome for your case. She and her team went above and beyond, making sure my divorce and custody case ended neatly and in the best interest of my children. Her pricing is reasonable and she’s willing to work with you. I highly recommend Tanya Freeman to anyone going through a divorce or family law case!" - Jenifer Mckinney
Determining Income for Support Payments
Another vital role of forensic accountants in New Jersey divorces is determining income for child support and alimony payments. When couples divorce, the court may order one spouse to pay child support or alimony based on their income. However, in some cases, determining a spouse’s actual income is not as straightforward as looking at a paycheck.
If one spouse owns a business, works freelance, or has other income streams like rental properties, determining their true income can be more complicated. Additionally, some individuals may try to underreport their income to reduce their financial obligations.
Forensic accountants are skilled in uncovering hidden income and evaluating all sources of revenue. They analyze tax returns, bank statements, and other financial records to get a clear picture of each spouse’s income. This allows the court to make informed decisions regarding child support and alimony, ensuring that the spouse who needs financial support receives the correct amount.
Identifying Marital vs. Non-Marital Assets
In New Jersey, only marital property is subject to division in a divorce. This means that assets acquired before the marriage or through inheritance may not be split between spouses. However, determining what qualifies as marital or non-marital property can be tricky, especially when assets have been commingled during the marriage.
Forensic accountants can help identify which assets are considered marital and which are not. By carefully reviewing financial documents and tracing the history of specific assets, they can determine whether an asset should be included in the division of property. This distinction is crucial, as it can significantly impact the financial settlement in a divorce case.
Their experience ensures that each spouse retains what is rightfully theirs and that the division of assets is fair based on New Jersey law.
Related Videos
Assessing the Impact of Tax Consequences
Divorce can have a significant impact on both parties’ tax situations. The division of assets, the sale of property, and the receipt of alimony payments can all result in tax consequences that need to be carefully considered. Without proper planning, these tax implications can take divorcing spouses by surprise, leading to financial difficulties down the road.
Forensic accountants play an important role in assessing the potential tax consequences of divorce settlements. They evaluate how different settlement options will affect each party’s taxes and work to minimize the tax burden on both sides. This allows divorcing couples to plan for their financial future and avoid unnecessary tax complications.
By providing a clear understanding of the tax consequences, forensic accountants help ensure that both spouses can move forward with financial stability after the divorce is finalized.
Fraud Detection in Divorce Cases
In some complex divorce cases, one spouse may engage in fraudulent activities to protect their financial interests. This can include hiding assets, falsifying financial documents, or engaging in deceptive business practices to reduce the value of marital property.
Forensic accountants are trained to detect signs of fraud in financial records. They carefully examine bank accounts, business records, and other financial documents to identify any suspicious activity. If fraud is discovered, it can have serious consequences for the outcome of the divorce. The court may impose penalties on the spouse who committed the fraud, and it may also impact the division of assets.
By detecting fraud early in the divorce process, forensic accountants can help ensure that both parties are treated fairly and that the final settlement is based on accurate financial information.
The Importance of Working with a Forensic Accountant in Complex Divorces
Going through a divorce is never easy, but when financial matters are complicated, it can be even more overwhelming. Forensic accountants play a crucial role in simplifying these financial complexities and ensuring that both parties are treated fairly.
Their ability to uncover hidden assets, value complex property, determine income, and detect fraud provides a level of clarity that is essential in complex divorce cases. With their assistance, divorcing couples in New Jersey can have peace of mind knowing that their financial interests are being protected.
While forensic accountants can provide invaluable assistance, it is also important to work with an experienced family law attorney who understands how to leverage this financial information in divorce proceedings. Together, attorneys and forensic accountants can work to achieve the best possible outcome for their clients.
If you are going through a complex divorce in New Jersey and believe that a forensic accountant may be necessary, working with a knowledgeable attorney can make all the difference. Tanya L. Freeman, Attorney at Law, has extensive experience in handling complex divorce cases and can guide you through the process. Our team is committed to protecting your financial interests and ensuring that you receive a fair settlement. Contact us today to learn more about how we can help you during this difficult time.