Getting divorced can be an emotional time for anyone, filled with difficult decisions that will shape your personal and financial future. Not all divorce cases are the same, with the process being more intricate for couples that have significant assets, business ownership, or multiple real estate holdings.
If you have significant assets, a forensic accountant for divorce can protect your interests by discovering any financial discrepancies to guarantee that you receive your fair share.
At Turner Family Law, we know the pitfalls that come with high-asset divorces and what steps should be taken to keep you on track.
Our South Carolina high-asset divorce lawyers have the training and experience you need to ensure an equitable distribution of assets while adhering to current property division laws. If you need guidance in assessing your financial portfolio, our legal team is ready to help.
Defining High-Asset Divorce
Given the challenges of any divorce, matters only become more challenging in high-asset divorce cases. A high-asset divorce occurs anytime a couple’s net worth totals more than $1 million in real property, personal property, business holdings, bank accounts, retirement vehicles, and other investments. Real property may include your primary residence, rental properties, or other real estate, while personal property may include jewelry, furniture, or valuable collections.
What is a Forensic Accountant?
A forensic accountant is an individual who analyzes the financial records of an individual or business. Some forensic accountants work exclusively in investigating financial crimes, testifying as expert witnesses.
In high-asset divorces, a forensic accountant may evaluate complex financial data, audit transactions, and investigate any inconsistencies in bookkeeping or financial statements. Many forensic accountants are licensed certified public accountants (CPAs). In addition to professional licensure, forensic accountants can also pursue specialized training as certified forensic accountants (CrFAs) or certified fraud examiners (CFEs).
Prenuptial and Postnuptial Agreements in South Carolina
Forensic accounting in divorce cases is especially important if a prenuptial or postnuptial agreement is in place. Under SC Code §20-3-630, a prenuptial agreement is only enforceable when signed by both parties, if both parties have independent representation, and if both parties disclose their income, debts, and assets. If either couple provides incomplete information regarding their assets, a forensic accountant will shed light on the incongruity. This can jeopardize the validity of the agreement, meaning that separate property will be fair game during divorce.
Functions of a Forensic Accountant in High-Asset Divorces
As previously mentioned, a forensic accountant serves the critical role of conducting a thorough examination of your spouse’s finances to protect your interests. Some of the duties that a forensic accountant is tasked with include:
- Discovering hidden or misrepresented assets;
- Evaluating the fair market value of jointly owned businesses or professional practices, or those owned by one spouse;
- Determining the enforceability of prenuptial or postnuptial agreements;
- Uncovering if any assets have been transferred out of a spouse’s name (i.e., placing property into a trust) prior to the divorce being finalized;
- Distinguishing between separate and marital property;
- Determining the financial implications of spousal support (alimony) and child support; and
- Evaluating the tax implications of marital property distribution.
Do I Need a Forensic Accountant for My High-Net-Worth Divorce?
While determining fair and equitable distribution of assets alone can prove challenging, matters become further complicated when spouses fail to disclose assets, income, or spending patterns. By analyzing financial records, a forensic accountant can discover any inconsistencies in financial disclosures and take appropriate action. This will allow an attorney to have a more complete understanding of a couple’s financial situation.
For example, if one spouse buys a home with nonmarital funds, but uses marital property to pay the mortgage, this will be considered marital property in a divorce. Even though the home was purchased with their own separate funds, a forensic accountant can trace the source of the mortgage payments back to a joint account (even if your partner attempts to conceal that information). These investigative and auditing skills are a must when going through high-asset divorce proceedings.
Forensic Accountants and High-Asset Divorce Attorneys Form a Strong Team
Forensic accountants and divorce lawyers often collaborate on divorce cases to gain a more complete perspective of a divorcing couple’s financial picture. A forensic accountant who specializes in family law can be the perfect complement to a divorce lawyer, clarifying financial inconsistencies to ensure the fairness of the judicial system.
A forensic accountant can take the appropriate measures to discover the source of the funds and the amount, while a high-asset divorce attorney can negotiate on your behalf to ensure you receive your fair share. A divorce lawyer’s strategy may have to be modified as new information arises, making it critical that both professionals keep in constant communication.
Speak with Our South Carolina High-Asset Divorce Attorneys Today
Facing divorce can be a confusing and terrifying time, making you question your choices. While making the best decisions may be complicated, choosing experienced representation should not be. At Turner Family Law, we have helped countless individuals facing high-net-worth divorces understand their options while offering legal solutions that meet their needs.
Our founding partner, J. Michael Turner, Jr., has an established history of helping clients achieve favorable outcomes during divorce proceedings, setting them up for future success. To learn more, contact us online or by phone to request your consultation.
