One author defines forensic accounting broadly as “the art and science of investigating people and money”. It follows that some or many divorce cases benefit from a forensic investigation.
Many financial decisions are the outcome of divorce. Divorcing spouses have to deal with the division of property and money, the payment of child support and maybe spousal support. To do so, information must be gathered about the existence and value of community property and separate property assets and liabilities. Homes, pensions, small businesses and professional practices need to be valued. Budgets are often used to determine support payments for children and spouses. All the purview of a forensic accountant.
Some instances to use a forensic accountant are:
- when one or both spouses is self employed
- when unreported or under-reported income is an issue
- when determining the marital life style is an issue
- when accounting for characterization and reimbursements is needed