What Does a Forensic CPA Do in a Divorce and Do I Need One?

The definition of the word forensic is “to seek the truth.” Generally speaking, that is a fair representation of what a forensic CPA does. The forensic CPA may assist the divorce attorney or may be hired directly by a divorcing spouse to help untangle an intertwined and complicated financial situation. Some of the types of tasks that a forensic accountant would typically assist with:

  • Determining which assets or liabilities of a divorcing couple are non-marital and developing a plan of dividing the assets and liabilities in an equitable manner.

 

  • Determining the true cost of a couple’s lifestyle and how a soon-to-be single spouse will be able to continue to live as they have become accustomed to.

 

  • Determining the true income of each spouse. This amount can then be used to calculate alimony and/or child support payments that may be necessary.

 

  • Determining the true value of a closely held business.

 

  • Assisting the divorce attorney in requesting the proper financial documentation in order to provide these services.

 

  • Due to the adversarial position of the couple, a spouse may not always provide the opposing spouse with accurate financial information. There are a number of ways that a forensic CPA can determine what is correct and what is inaccurate.

 

  • Determine the correct value today of a divorcing spouse’s future pension benefits.

 

  • Determine if a spouse is hiding assets or income.
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