When it comes to high-asset divorces, there is a lot on the line. A poorly negotiated or litigated divorce can be extremely costly, leaving an individual with less financial resources than he or she deserves. This is why it is critical that those who are going through a high-asset divorce fully understand the process and how to utilize it to their advantage.
Property that is deemed marital in nature, meaning that it was acquired during the course of marriage or was brought into the marriage and comingled with marital assets, is generally divided equitably in New Jersey. However, reaching a fair result in the property division process requires an accurate assessment of the assets in play. Far too often individuals in high-asset divorces try to hide money and other assets so that they won’t be subjected to property division. This is wholly unfair, and it’s one reason why parties who suspect a spouse of hiding assets may want to consider pursuing forensic accounting.
Forensic accounting is an accounting method whereby a financial expert digs deep into the numbers to identify red flags and discover hidden assets. They understand the complexities involved in financial matters, whether they be business or personal in nature, which means that they know the common ways in which people try to hide their assets. Therefore, a forensic accountant may be able to uncover fake debts, underreported income, hidden accounts and cash, and false transfers to businesses and other individuals.
There is often a lot of conflict in high-asset divorces, and lack of trust can be a barrier to resolving many legal issues. Yet, even those who trust their soon-to-be ex-spouse should think about whether forensic accounting is right for them. After all, an individual only gets one shot at the property division process, so they should think about taking every step they can to best ensure that they retain or obtain the financial resources to which they are entitled. A divorce attorney who is experienced at handling high-asset divorces may prove valuable throughout this process.