Monday, September 17, 2018

Five Reasons To Hire A Divorce Financial Expert


One of the first issues to address with a your divorce attorney is whether or not to hire a valuation expert.

This decision should be made early as the best experts can be quickly snapped up by your opposition.

Hiring an expert at the tail end of the case is complicated by time and document production constraints.  

More often than not a financial expert can be helpful--if only for the piece of mind.  But the good ones are expensive, so it's best to have a cost versus potential benefit analysis discussion with your lawyer at the outset.  If in doubt meet with the potential expert and your attorney to gather more information.  Be frank about your ability to pay.  

There are several reasons to retain a financial expert for your divorce:

1.  Business ownership:  You or your spouse have an ownership interest in a business.  Attorneys are not typically qualified to value a business nor to interpret or audit business records.

2.  Failure to report earnings or income.  If you suspect your spouse or her business of under-reporting income, a valuation expert can conduct a forensic audit of the books.  These types of audits can be very expensive, so be circumspect in this decision.

3.  Tax issues:   How to reduce the tax consequences of transfers incident to a divorce?  Have returns been filed? How to reduce the risk of an audit?

4.  Spending/Debt analysis:  Are you claiming your spouse squandered marital assets through outrageous and wasteful spending?  Gambling?  

5.  Tracing Separate Property:  Did you or your spouse bring assets into the marriage or inherit and estate during the marriage?  An expert can help define and segregate these assets in order to bolster exclusion arguments.  If the assets were co-mingled or marital funds were used to maintain or enhance the property, then an expert can help quantify this analysis.  An argument may exist for inclusion under certain circumstances.

Financial experts also assist in the definition and organization of relevant financial records.  

She can also accompany your attorney to mediation or testify at arbitration or trial on your behalf.  

Always build the best team (within your budget) for the best possible outcome.  

It may take a village.  

More thoughts ...