Divorce is widely regarded as one of the most challenging emotional endeavors that many have to face in their lifetime. During divorce proceedings, anger and accusation can run away from us, as the stress of dealing with separation from a spouse sets in and assets become divided. This stressful time often leads to financial and legal errors of judgment. It is becoming increasingly common for one or both parties to work with forensic accountants these days in a divorce. In this post, we’ll look at who pays for a forensic accountant in a divorce, as well as some of the motivations for bringing a forensic accountant into your situation.
What is a Forensic Accountant in Divorce?
Forensic accountants seldom work exclusively on divorce cases, but when involved in this type of case they will approach it with the same thoroughness and levelness that the standards of their work require. In this type of case, a forensic accountant helps facilitate divorce proceedings by uncovering relevant data about the divorce and submitting the appraisal of assets to courts, as well as evaluating custody claims and child and spousal support.
Data that could be relevant to divorce proceedings include digital evidence of infidelity, secret bank accounts, hidden assets and income streams, spending habits of petitioner and defendant more. FAs will often take a leading role in the appraisal of asset division, including automobiles, businesses and properties, child and/or spousal support, and evaluating joint fund spending throughout the divorce procedures.
Since there is a considerable financial element in every divorce, it very often makes sense to include a forensic accountant to oversee legal proceedings and ensure a client does not end up losing control of their finances.
How Much Does a Forensic Accountant Cost for Divorce?
Cost for forensic accountants in Divorce will vary depending on a variety of factors, such as experience in the field and the complexity of the case. Many forensic accountants charge between $300 and $500 an hour. Since the work Forensic accountants will be doing on a case is typically ongoing, it is worth careful consideration before taking on one of these specialists for your case. In certain instances, these accountants can create larger divides between families while draining family assets.
However, if the assets to be divided are significant enough that it is cost-effective, then bringing a forensic accountant can save money in the long run. If a divorce involves any sort of custody dispute, then the work forensic accountants accomplish for a client in their determination becomes invaluable.
Who Pays For a Forensic Accountant in a Divorce?
Since whichever party is responsible for hiring the Forensic accountant in a divorce is the one who will pay them, careful consideration is needed to make sure taking on a forensic accountant is the right decision. When cases of divorce conclude, the legal actors in the situation will move on to future cases and it will be the divorcees that will be saddled with the burden of their decision. Forensic accountants are certain to pull their weight with the cases they are brought on for, but this must be weighed against the potential significance of this legal maneuver on the future of a divorced relationship.
Divorce is an emotionally and financially complex process, but forensic accounting can help smooth the process. By accurately assessing financial information and providing an objective, equitable way to divide assets, and ensuring there are no significant disparities, a forensic accountant can save time and money while ensuring that the agreement abides by current laws.
The added cost and familial strain that a forensic accountant can bring to divorce proceedings is something that also needs to be carefully considered, so anyone looking to hire a forensic accountant should weigh the pros and cons of this decision. If you are curious about the services our experts can provide you we encourage you to chat with one of our case representatives at no cost.