FORENSIC ACCOUNTING IN A CALIFORNIA DIVORCE

Forensic accounting in a California family law or divorce proceeding refers to the application of accounting principles and investigative techniques as required to ascertain facts and evidence. It involves analyzing financial records and transactions to uncover and present evidence regarding the financial aspects of the marriage, including assets, liabilities, income available for support, and expenses. Antonyan Miranda employs an internal forensic accountancy department led by a highly qualified and experienced forensic CPA to assist with all financial aspects of marital dissolution.

In California, determining the value and character of marital assets and accurately assessing income available for support can be complex, especially when there is a large estate, multiple businesses, suspicions of hidden assets, or attempts to conceal income. Tracing, business valuations, income available for support, and analysis of the marital standard of living are just a few of the forensic services that Antonyan Miranda provides.

What Does a Forensic Accountant Do in a California Divorce?

SCOPE OF ASSIGNMENT: 

Sometimes, the parties to a family law or divorce proceeding retain private forensic accountants to assist with the determination of issues and to provide strategic advice.  The court may also appoint a forensic accountant as an Evidence Code section 730 expert to assist the court with determining issues as directed by the court.  In this case, the parties may retain an Evidence Code section 733 expert to rebut the court’s expert.

ASSET TRACING:

Forensic accountants trace assets acquired prior to, during, or after the marriage, including bank accounts, investments, real estate, business interests, and other properties. They analyze financial statements, tax returns, bank records, and other documents to establish a clear picture of the marital estate, including the characterization of property.

BUSINESS VALUATION:

If there is a separate property or community property business, a forensic accountant may be employed to determine the value. They assess the financial health of the business, analyze income statements, balance sheets, cash flow statements, and consider factors like market conditions, industry standards, and goodwill.

INCOME ANALYSIS:

Forensic accountants examine income records, tax returns, payroll statements, and other financial documents to accurately determine each spouse’s income available for support, be it active or passive income. They look for any attempts to conceal or minimize income, such as underreporting earnings or inflating expenses, to ensure an accurate assessment of each spouse’s financial resources for support calculations.

LIFESTYLE ANALYSIS:

Forensic accountants evaluate the marital standard of living by examining spending patterns, credit card statements, and other financial records. This analysis helps determine the appropriate level of spousal support by establishing the financial standard of living during the marriage.

EXPERT TESTIMONY:

Forensic accountants may provide expert testimony in court to explain their findings, present complex financial information, and offer opinions on matters such as asset valuation, income available for support, or financial misconduct. Their objective and professional expertise may significantly assist the court’s final determination of the issues. 

Why Should the Law Firm That I Choose for My Divorce Have a Forensic Accountant on Staff?

Having an internal forensic accountancy department is essential to unwinding and understanding large and complex financial estates and can be much more efficient and effective than outsourcing. Here are several ways in which Antonyan Miranda’s forensic accountant department can help you:

• Assist in identifying and tracing marital assets, including bank accounts, investments, real estate, business interests, and other properties. Review and assess the tracing conducted by an opposing forensic accountant or Evidence Code section 730 forensic accountant.

• Conduct a valuation of the business, assessing the financial health, profitability, and market value of the business. Review and assess the valuation of a business conducted by an opposing forensic accountant or Evidence Code section 730 forensic accountant.

• Determine each spouse’s income available for support, including attempts to manipulate income, such as underreporting or hiding income.  Review and assess the income available for support analysis conducted by an opposing forensic accountant or Evidence Code section 730 forensic accountant.

• Establish the marital standard of living by reviewing pertinent financial information related to income, debts, investments, and assets.  Review and assess the marital standard of living analysis conducted by an opposing forensic accountant or Evidence Code section 730 forensic accountant.

• Provide strategic assistance in the areas of discovery and trial preparation, including deposition, document requests, and issuance of subpoenas.  Provide expert analysis of discovery production, particularly in the instance of complex financial matters.  Provide strategic input regarding trial exhibits and cross-examination.

With access to Antonyan Miranda’s forensic accountancy department, you gain access to specialized financial expertise that can significantly enhance your chances of achieving a favorable outcome in your California family law or divorce case. Our team brings a thorough understanding of complex financial matters and can provide objective analysis and guidance throughout the process, ensuring your financial rights are protected. At Antonyan Miranda, we aggressively advocate for your interests, using all available legal tools and strategies to help secure all that is important to you: family, finances, and assets!