Forensic Accounting for Family Law and Divorce
Forensic accounting for parties in a divorce
When emotions run high, facts matter. In situations where income, valuation, assets and business interests are at issue, in divorce or family law matters, careful and sensitive forensic accounting and valuation services are critical.
BPM provides a range of forensic accounting and valuation services for parties in dispute. Our experienced forensic accounting and valuation professionals assist both attorneys and family members with the following.
Business valuation
Family Law business valuation in California is a unique subset of valuation. A business’s “marital value” can be distinctly different from a commercial entity’s fair market value. We are skilled at advising clients and attorneys on the fine points so they can effectively conclude appropriate settlements.
Income available for support
Marital disputes often entail complex arguments about appropriate levels of spousal and child support.
Our professionals are skilled in identifying sources and amounts of income available for support, including, where necessary, investigating lifestyle behaviors to identify sources of undisclosed income or expense. We help clarify the accounting and prepare disclosures, reports and records when cash payments are agreed on, a family business pays personal expenses or monies are being transferred between multiple accounts.
Reimbursement claims
Our team employs their experience as fraud auditors to apply the appropriate techniques to offer a clear and concise claim — or an appropriate defense against reimbursement claims. We are familiar with the standard reimbursement under Family Code Section 2640. We understand Watts charges, Epstein credits and can determine Pereira / Van Camp business reimbursements.
Tracings
We understand the rules that govern community versus separate property characterizations. We are familiar with the different forms of tracing and the court cases that have led to them. Together with legal counsel, we select the appropriate technique to offer effective results.
Moore Marsden calculations
We prepare Moore Marsden calculations regularly. We can assist if you have properties with multiple financings or commingled funds.
Hidden assets
Moving assets (cash or other) from place to place are typical schemes of fraudsters. We have frequently performed tracings and accountings to prove to the court that assets have been moved for the benefit of one spouse at the expense of another. We use the same techniques the Criminal Investigation division of the IRS uses to prosecute tax crimes.
730 joint expert appointments
We welcome joint expert assignments under Evidence Code 730. We have completed many of them and found that they are an excellent way to move your case along. 730 assignments are great for small yet complex cases with sparse records, business value and income available for support issues. We have had significant experience in mediation settings and can often successfully conclude assignments by having both attorneys and both parties in a separate conference setting in our offices.
Our professionals provide clients with a full accounting of the transactions of the family unit and its business(es). We can quickly review and convert large amounts of raw documentation into useful accounting to meet court, family or attorney requests. We also advise on the tax impacts of asset division and offer strategies to mitigate future tax impacts in designing settlement vehicles.
