What Is the Role of a Forensic Accountant in an Illinois Divorce Case?

 Posted on April 17, 2020 in Division of Assets

When a couple gets divorced, the terms of the divorce are largely dependent upon financial information. Illinois courts divide marital property according to equitable distribution, which means that each spouse is given a fair, but not always equal, portion of the marital estate based on their income, assets, employability, and other factors. Child support and spousal support payments are also based on the spouses’ income and assets. The more complex the spouses’ financial portfolios are, the more likely complications will arise during the divorce process.

Spouses who own complex assets are also more likely to attempt to hide assets or lie about finances in order to manipulate the divorce terms. If you are considering divorce and your financial situation is less than straightforward or you have concerns about hidden assets, a forensic accountant may be a valuable resource.

Examining Financial Data for Inconsistencies

In order to fairly divide marital assets and determine child support or spousal support issues, divorcing spouses must disclose all of their income sources, assets, and other financial data. A forensic accountant is a specially trained accountant who knows how to thoroughly investigate the finances of an individual or business. Forensic accounting is often used in divorce cases involving allegations of financial fraud, but it is also useful in cases not involving financial deception.

Forensic accountants may use a variety of information to form a clear picture of a person’s assets and debts including tax returns, credit card statements, bank statements, business contracts and invoices, and more. He or she may look for hidden sources of income and undisclosed real estate properties, identify high-value assets, search electronic paper trails, and examine financial records for inconsistencies. A forensic accountant often works closely along with a family law attorney and may testify at depositions or court hearings.

The information uncovered through forensic accounting can a major impact on the outcome of a divorce. If one spouse has been hiding assets or revenue sources, the court could impose sanctions on the guilty spouse. In extreme cases, the entire value of the hidden assets could be awarded to the other party.  

Contact a Naperville Divorce Lawyer

In order for a spouse to receive a fair divorce settlement or verdict, the finances of both spouse’s must be fully disclosed. If you have reason to believe that your spouse is being deceptive about finances or you want to learn more about forensic accounting during divorce, contact Pesce Law Group, P.C. Call 630-352-2240 to schedule a free, confidential consultation with a knowledgeable DuPage County family law attorney from our firm.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=830000

https://www.investopedia.com/terms/f/forensicaccounting.asp