Imagine accumulating years of financial documents, like bank statements, tax records statements for credit cards, the statements of a brokerage and payroll reports.
Technically, you now have information.
Practically, you may still have very few answers.
It’s not always easy to solve matrimonial issues that are complex because of the absence of financial records. It’s often difficult to determine which documents are relevant and identify crucial missing parts.
Start with the query, not the spreadsheet.
The process of financial discovery for divorce forensic accountants in New Jersey will differ from the process of a person who simply organizes papers.
Imagine that the dispute has income which is available for support. Reviewing a tax return is a good idea, however a business owner or highly compensated professional may get money via a variety of ways. Distributions, bonuses, salary and other forms of compensation could require additional investigation, based on the situation.
In the event of undisclosed assets, different records could become relevant. The activity of banks, transfers, and spending patterns can be used to develop a complete financial picture.
It’s not about collecting every piece of paper that you can imagine. The objective is to collect the required documents needed to answer specific financial questions.
Business Ownership Changes the Discovery Process
The matrimonial process could be enhanced by a private firm.
Conducting a business valuation in divorce in New Jersey requires appropriate financial information regarding the business. A valuation expert may require historic financial statements, the tax records, ownership information and other documentation based on the type of engagement.
Incomplete information may cause issues.
For instance, analyzing income without understanding the expenses is only a part of the story behind the company’s finances. A single year’s worth of data may not show the extent to which performance is normal or exceptional.
SJS Forensics helps counsel by identifying relevant documents, preparing targeted discovery requests as as analyzing the material produced to ensure their accuracy.
Not Every Financial Difference Means There was something else going on.
Unknown transactions can easily raise suspicions during divorce proceedings as they’re emotionally charged.
The location of the transfer could not be determined until the records are consulted. The large amount of money withdrawn could be some common cause. However, a routine series of transactions might merit an examination closer when taken together.
It is essential to begin by conducting an honest analysis since forensic accounting shouldn’t begin by assuming that there was misconduct.
Records should be the starting place for analysis.
Mediation Can be More Productive by utilizing better information
Financial experts are often used in court however, a useful analysis could begin much earlier. If parties aren’t in agreement about the value of their business, their the value of income, property that is separate, or any other financial activity that is unusual Clarifying those issues prior to mediation can help clarify what is actually contested.
SJS Forensics is a forensic accounting company that blends knowledge of forensic accounting along with an approach to settlement. They are also able to participate in mediation for complex financial disputes.
When testimony is necessary, an expert witness accountant for matrimonial litigation must be able to take the underlying analysis and explain it clearly to attorneys, mediators, judges, and other non-accountants.
The goal is to reduce the Risk of Uncertainty
Even a divorce could include thousands of financial transactions that have been built up over a prolonged time. The simple act of putting these records in folders won’t provide financial clarity. It’s the responsibility of someone to decide which documents are required, which questions remain unanswered and what additional information is necessary.
This is the real value of the forensic analysis of finances. It is not our goal to make divorce more difficult through the creation of a large pile of papers. The objective is to minimize the number of unanswered financial concerns in a complex situation.