Half of marriages end in divorce. That’s what they say. But even if you are a statistic, you may not need a divorce forensic accountant. However, you will need one when you and your spouse become litigants over the income and value of a business. In divorce litigation, the parties do not agree on the value of the business and its income. The disagreement in value increases when the business was separately owned before marriage. Unlike the operator of the business, the non-operator often believes the value is higher. They also believe the income and cash profits generated by the business is much higher. These are complex issues and we are here to “simplify the complex.” In other words, if accounting were a language, we’d speak in plain English to the attorneys and their clients.
Forensic Accounting Expert Witness in Orange County
A divorce forensic accountant is a CPA qualified to testify in court as an expert on accounting and financial matters in family court. As a forensic accounting expert, our work is credible and admissible in court. While we are there for the attorneys and their clients, we are also there to help the court make a decision. If you own a business, our first task is to calculate your income over a specific period. Our calculation then becomes the basis for the court’s child and spousal support orders.
Divorce Businesses Valuations in Los Angeles County
We calculate the value of the business. The value of a business and its income is controversial. The personal expenses paid for by the business is one of the most common controversies. Businesses often classify personal expenses paid by the business as business expenses. This lowers the profits of the business. A business is more valuable when its profits are higher. The owner of a business has a separate property interest if they owned the business before marriage. Forensic accountants allocate the value of the business between separate and community interest using the language in the Pereira Van Camp divorce cases.
Divorce forensic accounting is a highly specialized CPA practice. While there are thousands of CPAs in Southern California, there are very few in Orange County and Los Angeles County, who qualify as divorce forensic accounting experts. When you’re contemplating divorce litigation, please call Greg Raffaele at 949.264.1455 for a free one-hour telephone consultation.