In a perfect world, a divorce would be a simple open-book test. Both people would lay all their financial cards on the table, and assets would be divided fairly. When this is not the case, enlisting the help of a Troy, MI divorce lawyer can help to protect your rights and your financial future.
The reality is, we don’t live in a perfect world. We live in a world of “it’s complicated.”
Often, the financial picture presented by a spouse is… let’s call it creatively edited. Income streams suddenly dry up. Mysterious expenses appear. An otherwise thriving business is suddenly struggling.
When the numbers start to feel fuzzy and your intuition is screaming that something is off, you need a financial bloodhound.
Enter The Forensic Accountant.
Think of them as the CSI of the financial world. They aren’t your typical CPA who prepares your taxes. Their job is to investigate and uncover the story that the numbers are trying to tell, especially the parts someone is trying to hide.
So, What Does A Forensic Accountant Actually Do?
A forensic accountant is an expert in untangling the most knotted financial messes. When we bring one onto a case, we’re asking them to put on their detective hat and get to work. Their mission typically includes:
- Finding Hidden Assets & Income: This is their bread and butter. They sift through bank records, credit card statements, loan applications, and business ledgers to find inconsistencies. They follow the money trail, whether it leads to a secret brokerage account or a cryptocurrency wallet your spouse conveniently forgot to mention.
- Determining True Income: For business owners, freelancers, or executives with complex compensation (bonuses, stock options, etc.), a pay stub doesn’t tell the whole story. A forensic accountant reconstructs a person’s actual lifestyle and income based on their spending, and not only what they claim on a tax return.
- Valuing A Business: A business is often the largest and most complex marital asset. You can’t merely guess what it’s worth. A forensic accountant performs a detailed business valuation by analyzing everything from cash flow and hard assets to goodwill, which gives you a concrete and defensible number to work with in negotiations.
- Untangling Commingled Funds: What happens when an inheritance (non-marital money) gets dumped into a joint savings account (marital money) and then used for a down payment on a house? It’s a mess. A forensic accountant specializes in tracing these funds to separate what’s yours and theirs.
Red Flags: When To Unleash The Hounds
You might need a forensic accountant if you see these red flags:
- Your spouse is suddenly secretive or controlling about finances.
- They own an all-cash business or have a very complex corporate structure.
- You see large unexplained withdrawals or transfers from your accounts.
- The lifestyle doesn’t match the reported income (they’re crying poor from the driver’s seat of a new luxury car).
- Financial documents conveniently go missing, or they delay turning them over.
- They insist on using a specific accountant you’ve never met.
The Payoff: Is It Really Worth The Cost?
Let’s be direct: forensic accountants are a significant investment, but it’s crucial to see it as just that: an investment, not an expense.
The goal is to uncover assets or income that will far exceed the cost of the service. Spending $15,000 to find a hidden $200,000 investment account is a strategic win, every single time. Their detailed report not only gives you incredible leverage in settlement negotiations but is also powerful and admissible evidence if your case goes to trial.
Often, the mere presence of a top-tier forensic accountant on your team is enough to encourage a much more “honest” and efficient settlement from the other side.
In the end, a divorce settlement is only as fair as the information it’s based on. When you have doubts about that information, you can’t hope for the best. You need to find the truth.
If you’re in Illinois or Michigan and suspect there’s more to the story with your finances, book a consultation with Merel Family Law today by giving us a call.
