There’s no doubt that ending a marriage is a complex and emotionally draining process. Not only do you have to separate your lives, but you must also divide your marital property.
In some cases, one party attempts to hide assets in an effort to walk away with an unfair financial advantage. This is where asset tracing can factor into a high-asset divorce.
Potential benefits of involving a forensic accountant
Hidden assets could lead to an unfair advantage during the property division process. As such, you might want to know how forensic accounting could help you maintain what’s rightfully yours.
Asset tracing examines financial records, transactions and other relevant information to track the flow of assets and identify attempts at concealment. Consider, for example, whether your spouse:
- Accumulated substantial wealth. Spouses who have amassed considerable wealth may attempt to hide assets through various means. They might transfer property to third parties. Their efforts may also incorporate offshore accounts or shell companies.
- Wasted marital property. One individual may intentionally deplete marital assets to seek revenge against their former partner. Through careful analysis of financial records and transactions, asset tracing can uncover suspicious activities and hold the responsible party accountable for their actions.
- Undervalued financial holdings. Each party must fully and accurately disclose their financial situation during the divorce process. But what if a business owner manipulates their records to minimize the value of their business interests? You deserve an accurate valuation.
No matter your situation, it’s reasonable to expect divorce terms based on the total value of your marital estate.
A complete accounting before beginning the property division process
Professionals with the necessary skills and experience to dig deep into financial records, analyze transactions and follow the money trail provide reliable evidence to support complex property division claims. And who wouldn’t want to protect their interests at the end of a marriage?
This provides individuals with a comprehensive understanding of the actual value of their marital estate by establishing transparency for a just outcome in challenging marital dissolution cases.