CLIENT’S FAQ’S REGARDING FORENSIC ACCOUNTING SERVICES

FOR DIVORCE MATTERS
By David V. Hanzich CPA MBA ABV CFF CVA CFE CGMA

Why do I need a forensic accountant, you have all of the information?

There are situations involving your case that will require the analysis and possible testimony of a qualified expert witness knowledgeable in financial divorce matters.  The financial analysis required for your case is beyond the scope of my legal services and expertise that I can provide.  In addition, the attorney is your advocate.  The forensic accountant is an advocate for his/her opinion.

Why can’t I just hire my own accountant?

There are stark differences between a traditional accountant and a forensic accountant such as:

·          Forensic accountants are trained in many financial disciplines and have obtained other professional designations such as the Certified Valuation Analyst (CVA), Certified Fraud Examiner (CFE), Certified in Financial Forensics (CFF) and others.

·          Forensic accountants are more likely to have qualified as an expert in a court of law and have extensive experience providing expert testimony regarding financial matters during deposition or at trial before a judge or jury.

·          Forensic accountants have knowledge of case law that may apply to financial issues related to your marital dissolution.

·          Forensic accountants are familiar with the legal process beginning with discovery of financial information through the various court proceeding and often assists your attorney in these matters.     

·          Forensic accountants are good communicators and prepared for controversial engagements.

What does a forensic accountant actually do?

Depending upon the complexity of your case, the forensic accountant is involved in the following: 

·          Assist the attorney in identifying financial divorce issues.

·          Identify any potential community tax issues to include innocent spousal relief.

·          Prepare a valuation of the community businesses.

·          Determine the cash flow of the income earners for support purposes.

·          Prepare a tracing of separately owned investments, cash and inheritance.   

·          Assist your attorney in identifying community assets and liabilities subject to division. 

·          Determine the potential tax consequences of certain asset distributions. 

·          Identify any credits or reimbursements due to the community from a spouse.   

·          Assist the attorney with settlement negotiations, to include structuring a buyout of the business, addressing spousal and child support issues and division of property. 

·          Analyze financial records to identify any diversion of assets. 

·          Testify in court regarding opinions reached on financial matters. 

Why can’t I use my spouse’s expert?

Under certain circumstances, both parties may agree to use the same forensic accountant.  However, in complex cases, there are financial issues where reasonable minds can (and often do) differ.  Given the same relevant facts, it is likely that two competent forensic accountants would reach differing opinions (conclusions).  For example, business appraisals prepared by two different appraisers may differ significantly.    

Mr. Hanzich has worked on over 500 civil and family law cases and has testified over 100 times, producing positive results for our clients.  For your next divorce matter, consider hiring our firm to provide competent forensic services and litigation support.  Call us to discuss your case.  We can help you identify the scope of the work needed and, for most cases, give you a general idea of the cost for our services. There is no case too small.