Financial Fraud During Divorce: How Forensic Accounting Can Help

 Posted on January 26, 2022 in Kane

 Ending a marriage requires the spouses to address multiple financial issues. Most couples need to determine who will keep the marital home, vehicles, furniture, and other property. They may also need to divide bank account balances, retirement funds, business profits, and other assets. Financial issues such as these are especially consequential in a high-asset divorce case.

However, for spouses or the court to determine a reasonable division of assets and liabilities, they must have a full accounting of assets and debts. Unfortunately, some spouses lie about property or income during divorce. They try to hide assets to shield them from division or fabricate financial information to lower their child support or spousal maintenance obligations. If your spouse is being less than forthcoming about financial information in your divorce, forensic accounting may help.

Uncovering the Truth When a Spouse Lies About Finances

The complexity, expense, and frustration of a divorce is often directly related to the spouses’ ability to cooperate with divorce proceedings. A crucial component of the divorce process is financial disclosure. When a spouse tries to manipulate the outcome of the divorce by concealing assets, undervaluing assets, or hiding income sources, the forensic accounting process may help reveal the truth.

How a Forensic Account May Help

Forensic accountants are specially qualified accountants who analyze financial documents and other records for signs of financial deception in a divorce. For example, a forensic accountant may look for inconsistencies in tax returns, loan applications, and other financial documents. They may perform business valuations and property appraisals. Forensic accountants may also trace the origin of assets to determine if the property is marital or non-marital. A skilled divorce lawyer can use the information obtained by a forensic accountant to avoid unfair property division settlements or inaccurate support obligations.

Contact a Kane County Divorce Lawyer

Almost every aspect of the divorce process is affected by finances. If you are getting divorced and you believe your spouse is lying about money, hiding property, inflating debts or expenses, or otherwise fabricating financial information, reach out to a St. Charles divorce lawyer for help. Our team of skilled attorneys regularly work with forensic accountants and other financial experts to uncover financial deception and stand up for our clients’ rights.

With over 200 years of collective legal experience, we have the legal tools and practical experience needed to handle even the most complicated and contentious divorce cases. Call us today at 630-665-7300 to set up your confidential consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000