Why You Might Need a Forensic Accountant During Divorce
Divorce is difficult for anyone, but when significant wealth is involved, the complexity multiplies. For high-net-worth women, understanding the financial picture is not just important: it is essential for protecting assets and planning for the future.
What a Forensic Accountant Brings to the Table
A forensic accountant examines financial records to create a clear, accurate view of marital assets, income streams, and spending patterns. Many assume the role centers primarily on uncovering hidden or offshore accounts, but that is not the case. The real value in working with a forensic accountant lies in the financial clarity they may provide for divorcing women and in the confidence those women may potentially gain when working with them.
“Most clients suspect hidden money, but the bigger issues are understanding what assets are available for division and planning for life after divorce,” said AnnMarie Broughton, an accounting manager and forensic accountant in our New York City office who focuses on matrimonial forensics.
Broughton’s work often begins with a thorough review of bank statements, investment accounts, and tax returns. This process may help clients and their attorneys by providing clearer financial information to support informed negotiations.
Common Issues in High-Net-Worth Divorce
Forensic accountants frequently address topics such as separate property tracing, stock options, restricted stock units, child support, and spousal maintenance. They also analyze illiquid versus liquid investments and tax impacts on different asset classes. Evaluating these factors may help support discussions aimed at achieving a fair and sustainable division of assets.
Spotting Dissipation of Assets
Another critical area forensic accountants address is dissipation of assets, which occurs when one spouse spends marital funds irresponsibly or secretly. If a spouse has spent significant marital funds without the other’s knowledge, a forensic accountant may help trace and quantify those transactions for consideration in settlement discussions.
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Lifestyle Analysis and Budgeting
Beyond uncovering questionable spending, forensic accountants can help model future living expenses. By starting with an in-depth analysis of historical spending, forensic accountants work with women to understand their future needs. This lifestyle analysis becomes an important foundation for settlement discussions. It can help explore questions such as how a lump sum or divided assets might affect future cash flow.
These models often include mortgage payments, discretionary spending, child support, and spousal maintenance. They compare projected expenses with available investable assets that may help support long-term financial stability. For many women, this process can help ease worries and provide a roadmap for independence.
Early Involvement Matters
Timing is everything. Engaging a forensic accountant early may help increase the likelihood of obtaining important financial records promptly. Often, once proceedings begin, obtaining financial records can become more difficult and require legal intervention. Attorneys often rely on these findings for negotiations. Acting early can help attorneys focus on the overall financial strategy within the legal framework of divorce.
Beyond the Numbers: Emotional and Strategic Support
Divorce carries emotional weight, especially when financial insecurity enters the picture. Many women feel overwhelmed by complex assets, tax implications, and investment strategies. A forensic accountant typically aims to help clients better understand their financial circumstances during the divorce process.
The role of a forensic accountant often includes educating clients. They learn how assets work, what liquidity means, and how taxes affect settlement decisions. This knowledge can help empower women to advocate for themselves and plan for life beyond divorce.
Privacy and Discretion
For women in this demographic, privacy is paramount. A forensic accountant works discreetly, often coordinating with attorneys and financial advisors to protect sensitive information. This collaboration is intended to help support decision-making consistent with long-term goals.
Explore Your Options
For high-net-worth women, a forensic accountant is more than a financial investigator. They can serve as an analytical resource to help clients understand their financial picture and evaluate potential options. By uncovering the facts and modeling the future, they can help clients move forward with strength and certainty.
Connect with a Savant advisor to learn more about how forensic accounting may apply to your situation.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.