Whether you’re considering getting a divorce or are in the early stages of the divorce process, you should consider hiring a forensic accountant to ensure equitable distribution of marital assets and fair levels of support. It’s a common misconception that everything you and your spouse owned during marriage will be split 50/50 during a divorce.
However, an expert in both family law and accounting will help you in dividing your assets equitably according to New Jersey laws, especially if one spouse earns an income that is substantially higher than the other. If you are unsure of the state laws or legal proceedings surrounding divorces, arming yourself with the financial knowledge needed for divorces can be a deciding factor in the outcome of your divorce settlement and help secure assets and support payments for you after your divorce is complete.
Your divorce lawyer may ask you to complete a Case Information Statement. This document is for listing your assets, liabilities income and expenses. A forensic accountant can help you understand this financial information and complete the statement accurately.
Before hiring a specialized accountant for your case, you should consider forensic accounting costs in NJ, what is at stake and whether the assets and income you are expecting in the divorce justify the firm’s fees. Choose an accounting firm that will fit your budget and provide high-quality financial analysis and legal services at the same time.
Fees Associated with Hiring a Forensic Accountant
As an expert in both legal and accounting concepts, your forensic accountant is crucial to helping you during your divorce proceedings to have equitable distribution of assets and fair level of support. The expertise and training of a forensic accountant does not come without a cost, but they are valuable in assisting you to get the outcome you want in the judgment for divorce. Here are the forensic accounting costs in NJ you should be aware of:
Flat Fee or Hourly Rate
In choosing a forensic accounting firm, you should consider the quotes for the legal and accounting services you need. Some accounting firms offer a flat fee for consulting and other services while most will bill at an hourly rate. Some firms might advise clients to consider the cost of long-term cases and they might have to charge you based on the time, scope and complexity of the requirements.
Consultation Fee
Another kind of forensic accounting costs in NJ to keep in mind is a consultation fee. You might be charged for an initial consultation that will involve meeting with a forensic firm in order to get information about your case and what services you might need, which could include analyzing financial statements and tracing assets. However, some firms may not charge you for this initial meeting.
Deposit/Retainer Fee
With their specialized knowledge in matrimonial matters, good forensic accountants are in high demand. To retain the services, you will often have to pay a deposit and sign an agreement. The upfront deposit can be quite costly, depending on the accounting firm.
Copying, Postage and Other Miscellaneous Fees
In addition to analyzing existing documents, forensic accountants will usually create reports for their clients that outline their findings. When dealing with hundreds of pages of document, a forensic accountant will often have to copy stacks of financial records. A forensic accounting firm might charge fees to copy and send documents and reports that may be used in court.
Benefits of a Forensic Accountant During a Divorce
Under NJ state law, equitable distribution means assets will be divided in accordance to what is fair and reasonable for your particular case. This means being awarded property you both owned during your marriage, a portion of a spouse’s income through support payments or funds from selling a closely held business. During the divorce proceedings, the court will decide what assets each spouse will receive after the divorce based on the information collected in the divorce process. However, when a spouse does not have knowledge of hidden assets, this can skew the judgment of the divorce to the other spouse’s favor. Hiring a forensic accountant and paying forensic accounting costs in NJ to analyze financial statements belonging to you and your spouse is the best way to ensure fair division of the funds.
Having a forensic accountant on your side during a divorce can ensure a fair judgment of your divorce as an accountant provides a variety of services, including business valuation, lifestyle analysis and asset tracing. In looking through business filings, personal and bank statements, accountants are skilled in locating assets that are unreported, hidden or transferred to a third party. Accountants will evaluate documents for inaccuracies that could indicate a spouse has been lowering the total worth of their property, business or income. They can also assist in asset recovery to obtain the funds that may have been deposited into a separate account or misappropriated.
There is also the matter of splitting property and businesses you and your spouse both own, which usually calls for a valuation of the business or property to find their full value.
These forensic accounting services will also help determine alimony and child support payments, which requires a thorough analysis to determine how much of a spouse’s income will go toward these funds. During a divorce, it’s important to calculate the assets and income of the spouse who may earn more than the other so there is equitable distribution.
While the forensic accounting costs in NJ might be higher than you expected, it is worth getting the insight only an expert in accounting and legal matters can supply to your divorce case.
