The Role of Forensic Accountants in High-Net-Worth Divorce Cases

High net-worth divorces are inherently complex by nature. Virginia is an equitable distribution state, meaning that courts will use principles of fairness to divide marital assets between spouses. Any type of divorce can lead to conflict, but there may be even more room for disagreement when there are more assets to divide. Your divorce attorney may recommend that you hire a forensic accountant to help with your situation, even if your case does not go to court. A forensic accountant can play a crucial role in many situations.

Valuation of Increases in Asset Value

Assets that each spouse brought into the marriage may appreciate over time. Individual stocks and property could go up considerably. The appreciation of the asset could be part of the marital estate that is to be divided. Although the increase in value of separate property during the marriage is not generally considered marital assets, it can change character if a spouse contributes to the increase through their own efforts (although only the increase that is attributed to the spouse’s efforts are part of the marital estate). A forensic accountant could give an opinion about how the valuation of the asset has changed and to what extent a spouse’s efforts played a role.

Hiding Assets

In some cases, one spouse may try to hide assets to keep them from being divided as part of the divorce settlement or decree. You may have an idea that your spouse has more assets than they have declared, but you are unable to locate the assets. Your spouse may have provided you with incomplete financial disclosure. Forensic accountants specialize in locating hidden assets based on their analysis of the financial records that you have. They could also search for assets that may be in the spouse’s name or find where they have transferred assets that they are hiding. Then, there could be significant financial consequences for the spouse who has hidden the assets.

Valuation of a Business

One spouse may own a business, or both spouses may own it together. If a spouse owned a business before the marriage, and it appreciated in value, the other spouse could be entitled to a share. It is crucial that you know the proper valuation of the business so that it can be properly divided between the spouses. Each spouse may hire their own forensic accountant, and the two professionals may come up with their own competing valuations for the business, making it crucial that your family law attorney works with a credible and persuasive expert witness.

Preparing for Litigation

Although divorce hearings are relatively rare, there is more of a chance that your case may go to court when there are more assets involved. Your divorce attorney may need help behind the scenes in how they prepare for the case and present your arguments in court. Not only can forensic accountants testify in court, but they also play a role in helping your divorce lawyer get ready for trial. Forensic accountants may also testify in depositions as you go through the discovery phase of your case.

Contact a Northern Virginia Family Law Attorney Today

Your divorce lawyer works with forensic accountants in high net worth divorce cases like yours. Call the experienced family law attorneys at ROOP XANTTOPOULOS BABOUNAKIS & KLAM PLLC to learn more about what you need to consider in a high net worth divorce. These divorces require an intensive amount of preparation and strategy to help you obtain the best possible result. You can schedule an appointment to speak with one of our attorneys today by visiting our website or by calling us today at (703) 442-0040.