Imagine receiving all your financial records when you get divorce, and that includes years’ worth of bank statements. These include taxes, credit cards and brokerage reports, as well as payroll statements, as well as other business financial documents.
Now you have technical information.
It is possible that you are unable to locate the answers you need.
Complex matrimonial matters aren’t always easy because financial records are unavailable. Sometimes the challenge is determining what documents will answer the questions that are important and recognizing when important pieces remain unaccounted for.
Start with the query and not the spreadsheet.
Financial discovery can be handled differently by a forensic accountant New Jersey than someone who is simply organizing documents.
Imagine a situation where the dispute is about funds that are available for support. The review of tax returns could be beneficial, however the business owner or highly compensated professional might be able to receive funds through a variety of channels. Compensation and bonuses can be a challenge to assess depending on your circumstances.
In the event of unidentified assets, other information may be required. Bank activity, transfers and spending patterns can be analyzed to provide an accurate financial picture.
It’s not about collecting every document you can think of. It’s important to collect all the data needed for answering financial questions.
The Discovery Process is altered by the ownership of a company
The matrimonial process could be enhanced by an independent company.
Performing business valuation for divorce in New Jersey requires appropriate financial information about the company. In the event of an engagement the appraiser may require historic financial statements, tax records, ownership records, and other documents relevant to studying the business and creating an assessment.
Issues may arise due to incomplete information.
For example, looking at revenues without considering expenses can only reveal a portion of the story behind the company’s finances. A single year’s performance may not tell whether the performance is typical or extraordinary.
SJS Forensics provides assistance to counsel by identifying documents that are relevant and assisting in the formulation of a specific discovery request and scrutinizing the documents to ensure precision and completeness.
It’s not always the case that every financial difference means There was something else going on.
The divorce process is an emotional process, and any transaction that isn’t understood could raise suspicions.
The destination of an unidentified transfer won’t be revealed until the records are reviewed. A huge withdrawal may be explained as normal. A seemingly regular series of transactions may deserve closer examination once viewed together.
It is essential to begin with an analysis that is objective for forensic accounting. It shouldn’t begin by assuming that there was a violation.
Records should be the first stage for analysis.
Mediation may be more effective with more accurate information
Financial experts are often involved in courtroom testimony but the most effective analysis can start much earlier. If there is a disagreement between parties about the value of their business, their the value of income, property that is separate or other unusual financial activities, clarifying those issues before mediation will help to define what’s actually at issue.
SJS Forensics is a forensic accounting firm that combines expertise in forensic accounting with a settlement-oriented mindset. They are also able to participate in mediations for financial disputes.
An expert witness accountant who is involved in matrimonial court should be able, when it is necessary, to explain their analysis to mediators, lawyers and judges, as well as other non-accountants.
The objective is to minimize the mystery
A divorce, even a simple one, can comprise a myriad of financial transactions that have been accumulation over a lengthy period of time. But that doesn’t mean you’ll be able to get financial clarity simply by recording the documents. It’s up to the individual to decide what documents need to be kept, what queries remain unanswered and the information needed to be added.
This is why it’s important to conduct forensic analysis. It’s not a goal to make divorce more complicated by adding documents. You want to slowly reduce the number of unanswered questions you have for a financial matter which is extremely complex.
