Divorce Engagements We can provide a wide range of services in assisting attorneys in representing their clients in divorce proceedings and in serving as expert witnesses. The services most commonly provided are: Assistance in Alimony and Child Support Issues Advice regarding taxation considerations of support payments and the division of marital property Forensic examinations of opposing spouses income or expenses Forensic examinations of closely held business Testimony as an expert witness
Assistance in Alimony and Child Support Issues Preparing Schedules of Net Disposable Income and Living Expenses - We can assist attorneys in preparing or analyzing schedules showing the net disposable income and anticipated living expenses of each spouse. These schedules may then be used to negotiate a support settlement agreeable to both spouses, or they may be introduced in court as evidence to be considered by the judge. Assisting in Support Agreement Negotiations - We can assist in explaining complex financial circumstances and options to both parties of a divorce in order to help reduce disputes and reach negotiated settlements. Advice regarding taxation considerations of support payments and the division of marital property We can assist attorneys in identifying the most tax advantaged settlements for their clients or in reviewing proposed settlement agreements before they are finalized to reduce taxes and increase the amount of cash available to either or both spouses. Additionally, we can assist with the preparation of tax returns during and after the divorce settlement.
Forensic examinations of opposing spouses income or expenses We can assist attorneys in providing forensic examinations of the income of opposing spouses in cases where the client spouse does not trust the opposing spouse or has specific knowledge or suspicion that income or assets have not been disclosed or expenses have been overstated.
Forensic examinations of closely held business When an ownership interest in a closely held business or professional practice is an asset of the marital estate, an examination of the company’s assets, liabilities, income, and expenses may be needed. This is especially true when one of the spouses is actively involved in running the business or professional practice. A forensic examination may be desirable for a number of reasons, including the following: Opposing spouses controlling closely held businesses may acquire assets through the business and not disclose them to the other spouse. For example, a husband who owns and controls a business may have the company purchase a vehicle for his girlfriend and record the vehicle as a fixed asset on the company’s books. If the company had not purchased the vehicle for the husband’s girlfriend, the husband would have had additional funds available for the support of his family. The vehicle may also be considered to be a personal asset subject to different distribution rules than those which apply to the business entity. The managing spouse may arrange for the company to pay some of the family’s personal expenses or to provide cars and other assets for the family’s personal use. For example, the managing spouse may have the company bookkeeper pay the family’s personal telephone, utility, and other bills. In addition, vacation and other personal expenses may be paid by the business and charged off as business travel. The managing spouse may have the company purchase and maintain cars, boats, and other assets for the family’s personal use. All of these items represent additional compensation to the family and should be considered in estimating total disposable income for alimony and child support purposes. To properly value the business, business income also may need to be adjusted for excess compensation as a result of those items. The managing spouse may receive income from the business that is hidden from the other spouse. Many businesses handle large amounts of cash income. A managing spouse may periodically use this cash personally and not declare the income to the Internal Revenue Service or to his spouse. The managing spouse may also be able to defer the timing of income recognition until after a divorce is final. Hidden or deferred income represents additional disposable income that should be available for the support of the family. The managing spouse may provide incorrect or incomplete information to the opposing spouse’s valuation consultant, making it virtually impossible for that consultant to accurately estimate the value of the company.
Testimony as an expert witness Our experience in taxation, attest engagements and financial analysis qualify us to provide expert witness testimony in divorce proceedings. The CPA's providing expert witness services in our firm have many years of accounting, tax and audit experience including several years of service in a Big "5" accounting firm.
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