A divorce accountant specialises in assisting clients separating from their spouses by valuing their joint assets and ensuring they receive a fair financial settlement. At Frenkels Forensics, our divorce accountants have decades of experience in divorce cases of all complexities and frequently work with the UK’s leading divorce solicitors and barristers, providing the forensic accountancy input they need to effectively represent their clients.
For assistance call us on 0330 118 8200 or Make An Online Enquiry.
What Is A Divorce Accountant?
Forensic accountants are highly trained professionals who examine the finances of businesses or individuals to get to the heart of a legal issue. We possess a unique skill set that combines accountancy proficiency with advanced investigative techniques, enabling us to collate and analyse vast amounts of data quickly and accurately. Our expertise can be invaluable in a wide range of legal proceedings, including criminal, personal injury, and divorce.
One of the key tasks of a divorce accountant is to use their forensic accountancy skills to unravel the complex financial issues arising from a divorce or civil partnership dissolution. Our expertise is particularly useful when one or both of the parties have substantial business interests. Unlike other assets, such as property, the value of a business asset is rarely immediately apparent. Accordingly, a divorce accountant is often called in to value the business and prepare a report for use by the parties and the Judge.
What Does A Divorce Accountant Do?
A divorce accountant uses complicated forensic accountancy techniques to place a realistic value on a couple’s business assets. It’s a complicated process because there are several potential valuation methods, and the appropriate one depends on a variety of factors, including the nature of the business, its trading history, and the extent of the party’s involvement.
For example, if the business has been trading for some time and has relatively stable profits, we might use a method known as ‘capital maintainable earnings’. This method bases a business’s value on its historical profits and level of risk. Where the business has substantial tangible assets but few intangible ones, the ‘net assets method’ might be the most appropriate since it involves calculating a business’s value with reference to the market value of its assets minus its liabilities.
Sometimes, we might combine methods to ascertain a business’s true value. For example, we might establish a business’s floor value using one method and then refine it using a different one. Further, it will often be necessary to adjust the headline value to account for unique circumstances. For example, if the success of a business depends heavily on the involvement of one key individual, we might feel it necessary to apply a ‘key person discount’ to reflect the fact that the loss of that key person will likely affect the business’s value.
How Are A Divorce Accountant’s Findings Used?
An accurate valuation of a couple’s assets is a fundamental prerequisite to a fair financial settlement. Divorcing couples are encouraged to view Court proceedings very much as a last resort and attempt to reach a financial settlement amicably, without recourse to litigation. This is particularly pertinent when the couple has children, since any ongoing parental conflict can exacerbate the negative impact of their parent’s separation.
For settlement discussions to be productive, the parties must have confidence in the accuracy of the information regarding the value of their joint assets. When a couple is separating, there is often substantial distrust between them, so in the absence of an impartial report prepared by an expert divorce accountant detailing the value of the assets, any settlement talks are less likely to yield results. Our reports give both parties peace of mind that they are in possession of the full facts and reassurance that any settlement reached will be fair.
If the parties are unable to reach an amicable divorce settlement and need to apply to Court, the Judge is likely to order that a Single Joint Expert be instructed to value their business assets and prepare a report detailing their findings. That report will be used by the Judge to reach a fair decision. Our divorce accountants frequently act as Single Joint Experts in divorce cases and have extensive experience with Court rules and litigation processes.
How Our Divorce Accountants Can Help
At Frenkels Forensics, our divorce accountants understand how stressful separations can be. Not only are our clients dealing with the breakdown of their marriage, but they are also often anxious about their future financial stability and that of their children. We use our expertise to bring clarity to often-complicated situations, ensuring everyone involved in a divorce is treated fairly and receives everything they are entitled to.
To discover more, please call us on 0330 118 8200 or Make An Online Enquiry.
“Thank you ever so much for the work and advice you have provided . The report was clear and accessible and will not hesitate to recommend you all.”
“I am indebted to you for your contribution, and for explaining things in plain English such that even lawyers can understand the issues”
“May I take this opportunity to thank you for your assistance in this matter. Counsel and the judge said that your report was one of the best they had seen in that it was concise and technically easy to understand.”