Imagine a collection of years-long financial records, such as bank statements, tax records, credit card statements, pay reports, and brokerage statements.
You have now the information.
Practically speaking, you might have very few answers.
It’s not always that difficult to solve matrimonial issues that are complex because of the absence of financial records. It’s sometimes difficult to identify the right documents to use and determine when there are important missing parts.
Start with the query, not the spreadsheet.
A forensic accountant for white collar defense may approach financial discovery differently from someone simply organizing documents.
Imagine a situation where the dispute is about money that can be used to help. Examining tax returns is a good idea, however a business owner or highly compensated professionals may be able to be able to receive funds through a variety of channels. Salary, bonuses, distributions as well as other forms of compensation may require further investigation based on the particular circumstances.
If there are assets that could be hidden, it is crucial to keep track of them. Bank activity, transfers spending patterns, and movements between accounts may help to create an overall picture of financial health.
It’s not about collecting every document you could imagine. The purpose is to collect the documents necessary to answer financial queries.
Business Ownership Impacts the Discovery Process
Privately held companies can add another substantial layer to matrimonial relationships.
Conducting a business valuation in divorce in New Jersey requires appropriate financial information regarding the business. A valuation expert may require previous financial statements, tax records, ownership details and other documentation based on the agreement.
Incomplete information could cause problems.
For instance, if you just look at income and not take into account expenses, it is not possible to know the full story of the financial performance of a firm. Analyzing a single performance year could be misleading.
SJS Forensics assists counsel by identifying relevant documents, helping make specific requests for discovery, as well as reviewing documents to ensure completeness and accuracy.
Some financial differences do not necessarily mean that there is something buried
A divorce is an emotional process, and any transaction that is unfamiliar can raise suspicions.
The location of a transfer may not be discovered until the records are examined. A huge withdrawal could be due to an usual reason. A routine set of transactions can be interesting at when taken in context.
It is crucial to begin by conducting an honest analysis since forensic accounting shouldn’t begin by assuming that there was a violation.
The documents should guide the analysis.
Improved Information Could Make Mediation more efficient
Financial experts typically are used in courtroom testimony however, they can be beneficial much earlier. If parties aren’t in agreement about the value of their business, their income, separate property or unusual financial activity Clarifying those issues prior to mediation will help to define what’s being argued.
SJS Forensics is a forensic accounting firm that combines the expertise of forensic accounting with a settlement-minded attitude. They also can participate in mediation for more complex financial disputes.
If a witness is required, an expert witness accountant in matrimonial litigation must be able take the basic analysis and explain the reasoning clearly to attorneys, mediators, judges as well as other non-accountants.
The goal is to reduce the unknowns
A divorce, even a simple one, can contain thousands of financial transactions that have been accumulated over a long period of time. Financial clarity isn’t achieved by simply putting records in folders. It is still up to the individual to figure out what these documents indicate in the first place, what’s not yet answered, and which additional information may be necessary.
It’s an advantage of the forensic analysis of financials. It is not our goal to make divorce more complicated by creating a huge amount of papers. It’s to simplify a financial situation and steadily reduce the number of unanswered questions.