Forensic Accountants In Monmouth County
Do you need help determining the value of your business during a divorce?
In a divorce proceeding, a forensic accountant may be necessary to determine cash flow and value of a business. The forensic accountant can help you litigate and/or negotiate a fair and equitable settlement.
- A starting point for most forensic analysis is the business and personal income tax returns. A forensic accountant can work with your attorney in analyzing all aspects of the tax returns and a forensic accountant can perform investigative services to uncover hidden income.
- If either party is an owner of a closely held business, a comparison of the company’s gross profit margin to the industry standards can be helpful. A thorough examination of sales and purchase invoices may reveal cash. By tracing these items to reported business income and expenses, the forensic accountant can determine if income was properly reported.
Another way to determine if income is properly reported is to compare the
income being reported by the business to the lifestyle of the parties.
The use of the Case Information Statement (CIS) could be critical for
A carefully completed CIS could prove to be the most important document in the divorce process. If the spending exceeds the income and there is not a correlated increase in debt, a red flag is raised.
Often times, forensic accountants will assist in a lifestyle analysis as well. This lifestyle analysis can be of critical importance in determining the appropriate level of support. When handling a divorce case, the attorney and client must be thorough. When a business is involved, the use of forensic accountants to determine the proper level of income available for support purposes and the value of the business for equitable distribution purposes is imperative.