The Role of Forensic Accountants in High-Asset Texas Divorces

 Posted on January 08, 2025 in Complex Property Divorces

If you are facing a high-asset Texas divorce, you could also be dealing with a spouse who has hidden marital assets to avoid dividing them with you. Significant wealth, along with properties, investments, and businesses, can make it more difficult to ensure a fair division of marital assets. If this is the situation you find yourself in, it is important to understand the role of forensic accountants.

Texas is one of nine states that operate under community property law when dividing marital assets. This generally means that marital assets are split exactly in half. Complex financial transactions make hiding marital assets easier for one spouse to accomplish. If you believe you may need a forensic accountant to ensure a fair division of marital assets, it is important that you speak to an experienced Fort Worth, TX family law attorney.

What Does a Forensic Accountant Do?

Forensic accountants are financial detectives trained to uncover hidden assets, trace complex transactions, and provide invaluable insights into the true economic picture of a couple’s finances. Forensic accountants are trained to do the following:

• Separate marital assets from non-marital assets to ensure the division of marital assets is fair.
• Perform a valuation of business interests to ensure there are no misrepresentations of the worth of the business.
• Find any hidden assets by diving into a couple’s finances (tax returns, real estate records, loan applications, income statements) to find any discrepancies.
• Trace financial transactions to identify any patterns of financial misconduct.
•  Identify any potential tax implications regarding the division of marital assets.
• Assist the attorney in the discovery process by analyzing financial evidence, preparing written reports, and testifying in court when necessary.

When Should a Forensic Accountant Be Hired During a Divorce?

Of course, not all divorces will require the services of a forensic accountant. However, a forensic accountant can be important if you or your spouse own a business. If your marital estate includes complex assets or real estate investments, there is a greater likelihood that one spouse could misrepresent marital assets.

When either spouse is self-employed or has significant income from retirement accounts, trusts, capital gains, or dividends, a forensic accountant could be crucial. Finally, if you believe your spouse has engaged in any type of unethical financial practice, such as falsifying assets or debt information or undervaluing assets or a business, a forensic accountant could be an invaluable asset.

Why Do You Need a Divorce Lawyer and a Forensic Accountant?

It is essential to have a highly skilled family law attorney to assist you with all aspects of a divorce. This can include not only the division of marital assets but also spousal support, child custody, and child support. A knowledgeable family law attorney ensures his or her clients get through a divorce in the best way possible with the best outcome possible.

A forensic accountant is not necessary in all divorces. However, among those with any level of potential financial dishonesty, a forensic accountant can make a substantial difference in ensuring all assets are accounted for and in splitting marital assets and debts. Forensic accountants play an important role in ensuring fairness and transparency in complex or high-net-worth divorces.

Complex financial situations can benefit from a forensic accountant who will correctly identify a fair settlement after uncovering hidden assets, examining financial records, and valuing business interests. If a divorce goes to court, the forensic accountant can testify, providing evidence and explaining the financial implications of the marital asset split.   

Contact a Fort Worth, TX Marital Asset Division Lawyer

An experienced divorce attorney can assess your case and determine whether a forensic accountant is necessary. If so, he or she can recommend a qualified forensic accountant to help ensure a fair settlement. Having a Fort Worth, TX marital asset division attorney from The Law Office of J. Kevin Clark P.C. can significantly affect your divorce's outcome. Attorney Clark has first-hand experience in the stress of divorce, particularly for stay-at-home parents. Call 817-348-6723 to schedule a free consultation.