Using a Forensic Accountant in Divorce Proceedings
Answering common questions on using a forensic accountant during a divorce.
By Adrian Pym
Finances are one of the biggest areas of dispute during a divorce. It’s why Prime Accountants’ expertise in forensic accounting has been called upon by a wealth of clients during divorce proceedings.
From business valuations to tax consequences of transferring assets between the parties, Prime director and forensic accounting expert Adrian Pym has more than 30 years’ experience in the field. This means he is perfectly placed to answer the most common questions about Prime’s matrimonial accountant services.
What does a forensic accountant do in a divorce?
Forensic accountants may be appointed by one or both parties during divorce proceedings where a business or high-value assets exist.
The work that we are most often instructed to undertake at Prime is a valuation of a family business and each party’s interest in it.
In these cases, the role of our forensic accountant divorce specialists includes:
- Valuing the business as a whole and the parties respective interests
- Assessing the liquidity of the business to see if any lump sum payments can be made
- Assessing maintainable income for each party involved in the business
- Calculating any capital gains tax issues on realisation of assets
- Calculating income tax on future maintainable income
Our team thoroughly investigates the finances of the individuals and the business to provide an impartial report on the true financial situation.
What are high-value assets?
High-value assets that may be subject to valuation by a forensic accountant for a divorce include shares.
What are hidden assets?
Assets or sources of income that have not been disclosed or are being deliberately concealed by one of the parties are referred to as hidden assets.
Forensic accountants are highly skilled at examining the financial information disclosed by the parties and detecting evidence of additional bank accounts or income sources during a divorce.
Learn more about the techniques used by our experts by reading our FAQs on forensic accounting.
Why use a forensic accountant for a divorce?
Forensic accountants who specialise in divorce combine accounting, valuation, auditing and investigative skills to provide a true picture of a couple’s business assets and their value.
The process involves looking at the facts and seeking evidence to assist the parties involved with resolving a dispute.
Findings from a forensic accountant are completely impartial and based on evidence and experience.
Because of this, enlisting the services of a forensic accountant during divorce proceedings can ensure an outcome that is fair to all parties.
Rising demand for forensic accounting in divorce
The use of forensic accounting for divorce has grown significantly in the last 20 years, becoming one of the busiest areas for our forensic specialists.
The latest data on divorce from the Office for National Statistics shows that the median duration of marriage at divorce in England and Wales is 12.9 years. The age group most likely to divorce is 45 to 49.
One or both parties are likely to have grown their financial assets during this time, so enlisting the services of a forensic accountant can assist the parties in understanding the financial information to ensure a fair outcome for all.
Who pays for a forensic accountant in a divorce?
In most divorce cases, the costs of using a forensic accountant are shared equally between the parties involved.
However, it may be the case that the Court orders one party to pay for all or a specific proportion of the costs.
How much is a forensic accountant for divorce?
Cost depends upon the nature of the instructions and complexity of the parties’ financial resources.
We are always happy to provide a cost estimate without obligation.
Tips on hiring a forensic accountant for your divorce
It’s always best to seek a recommendation when looking for a reliable and reputable forensic accountant that specialises in divorce, rather than going in blind.
Ask your solicitor for recommendations, or talk to someone who has previously worked with a forensic accountant who has experience in divorce cases.
The outcome of their findings can have a significant impact on your future finances, so do your research, request their CV, review their experience and ensure they can deliver what you need.
And make sure you enlist the services of a forensic accountant early on in divorce proceedings. It can make the process much smoother in the long run.
Our team are experts in matrimonial forensic accounting. For support and advice, speak to one of our team today.
Using a Forensic Accountant in Divorce Proceedings
If you need support and guidance from a forensic accountant, our team can provide jargon-free support. Find out more about our forensic accountant services or contact us for advice.