When to Partner with a Forensic Accountant - A Guide for Family Law Attorneys
Family law cases often come with financial complexities, and as an attorney, it’s your role to dig in and advocate for a fair resolution. But what happens when the numbers don’t add up, or critical details are missing? That’s where the expertise of a forensic accountant can make all the difference.
If you’ve encountered any of the following situations, it may be time to consider collaborating with one.
1. A Small Business Is Involved
When one or both spouses own a small business, financial investigations become more complicated. Unlike a W-2 employee whose income is easily verified by third parties, small business owners control how income and expenses are reported. Tax returns and income statements can be manipulated to show lower earnings than reality. If a business features prominently in your case, there’s a high likelihood the income isn’t as straightforward as it seems.
2. There’s a Discrepancy Between Lifestyle and Reported Income
Does the reported income fail to match the lifestyle? If someone declares they earn $40,000 a year yet maintains a luxury home, drives high-end vehicles, or vacations frequently, it’s a clear signal that something is off. Identifying hidden income or undisclosed assets is critical in cases where the lifestyle doesn’t fit the numbers.
3. Key Discovery Documents Are Missing
Incomplete or missing discovery documents are another red flag. How can the financial pieces of the puzzle be assembled if critical data, like bank statements, credit card records, or loan agreements are either undelivered or incomplete. The absence of vital records could indicate someone is intentionally withholding information to mislead or hide assets.
4. Your Gut Says Something Isn’t Right
Never underestimate your instincts. If something about the financial disclosures doesn’t sit right with you or your client, or raises too many unanswered questions, trust that instinct. Whether it’s subtle inconsistencies, missing details, or just a feeling that the math doesn’t add up, your intuition can often be the best sign to dig deeper.
Why Accurate Financial Assessments Matter
Each of these scenarios underscores one point—getting to the truth of financial matters is critical for achieving fair outcomes in family law cases. By paying close attention to these red flags and knowing when to bring in specialized expertise, you can ensure that hidden income or assets don’t slip through the cracks.
Partnering with experts isn’t about making your job harder; it’s about making results more accurate. Family law clients depend on you to protect their financial futures and knowing when to call in professional resources is one of the smartest moves you can make.
If you suspect there may be a need for further financial investigation or have any questions about the process works, we’re here to help.