Uncovering Hidden Secrets: Using Financial Accounting In Divorce Settlements

Using Financial Accounting In Divorce SettlementsAny marriage counsellor will tell you that honesty and communication are the bedrock of a successful marriage. Clichéd, perhaps. But in an unsuccessful marriage – that is to say one that may ultimately end in divorce – both these qualities can often be found lacking.

It is unsurprising, therefore, that forensic accounting has become such a valuable service within divorce proceedings that involve financial disputes. Indeed, one of the most common problems in agreeing upon a settlement is when one party believes that the other is hiding, or at least not truthfully declaring, the full value of their assets.

So when communication and honesty are notably absent, Frenkels Forensics can enter the scene and help through its expert divorce investigations. The company will act on behalf of one partner to conduct a thorough assessment of the other’s assets and report on the findings.

One of the most common disputes concerns the value of a business that is run by one or both of the partners in a marriage. When claiming their share of this business, a valuation will need to be conducted to ensure the price of the assets is fair. In such investigations other hidden secrets can be uncovered, such as cash taking that is not recorded on the books thereby distorting the turnover, or stock that was not taken into account.

In more complicated cases there can be undisclosed assets that one party might be completely unaware of at the start of the divorce proceedings – vehicles, properties or other investments, for example. Forensic accounting can shed light on anything that might have slipped under the radar.

Most importantly though, in what are extremely difficult situations at the best of times, all of the work can be done in a respectful way that ensures problems are not aggravated. The ultimate goal is to reach a fair settlement for both sides.

For expert financial help in settling a divorce contact Frenkels Forensics for an independent appraisal.

If you’re looking for advice in any aspect of forensic accountancy, then do get in touch via Twitter, Google+, LinkedIn or by visiting our website www.frenkels.com

By Vitek Frenkel – find me via Google+.

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