Do you really need a CPA for a divorce? The answer is that it depends
on the circumstances. Couples who earn more than $100,000 per year
combined, or who have a substantial business or a large number of assets,
will usually save money by using a CPA. Attorneys who practice family law
on a regular basis are familiar with the basics of divorce
finances, but people with more at stake need a specialist. There
are some things the attorney cannot do, such as a business valuation or
testifying as an expert witness. There are other financial functions that
will need to be done by either your attorney or a CPA. The CPA is usually more
efficient and cost effective, and many attorneys prefer to have a CPA take the
lead.
As a
result, more and more attorneys are recommending their clients retain a CPA who
specializes in divorce to help guide the client through the financial maze
of the divorce process. We are uniquely qualified to help attorneys and their
divorcing clients with the financial aspects of divorce. How so? Our Divorce
Accounting tax specialists have earned all
of the following credentials:
Certified
Public Accountant,
for accounting and tax expertise
Certified
Valuation Analyst,
for accurate and defensible business valuations, which is needed if you or your
spouse owns a business or professional practice
Certified
Divorce Financial Analyst, for specialization in the financial issues related to
divorce
Certified
Fraud Examiner,
for forensic accounting when your spouse is trying to hide assets or income.
How can
hiring a CPA save you money? Whether you are the wife, husband, business owner,
or stay at home parent, here are a few of the ways:
-
By analyzing the financial position of both spouses
both before and after the divorce, the CPA can suggest property division,
maintenance (alimony) and child support options you and your attorney may
not have considered. Over time, this could mean tens of thousands of
dollars to you.
-
By valuing the family business, so you can be sure
the property division is fair and equitable. People who skip this step, or
rely on their spouse's estimate of the value, can shortchange themselves
out of tens of thousands or even hundreds of thousands of dollars.
-
By considering the income tax effects of proposed settlements,
the CPA can point out the wisdom or folly of each proposal, again saving
you thousands of dollars. Oftentimes the tax effects do not manifest
themselves for a year or longer, after it's too late to go back and make
changes.
-
By carefully analyzing your spouse's financial
affidavit for any omissions or misstatements that could lead to an unjust
settlement or court decision.
-
By uncovering hidden assets or income, the CPA
protects your interests and gives your attorney bargaining power.
-
By performing some of the tasks your attorney would
normally have to perform, typically for a lower fee than he or she
charges, freeing your attorney to focus on other aspects of your case.
-
By testifying as an expert witness to any of the
above, thereby solidifying your case and leading to a more favorable
outcome.
In
addition to the direct financial benefits, you also get peace of mind knowing
you were not "out foxed" by your soon-to-be ex-spouse. This is an
emotionally difficult time, and an objective financial expert, working with
your attorney, will make sure you are being treated fairly.
Fortunately,
not all divorces are of the nasty variety depicted in movies such as "The
War of the Roses." Many couples, while acknowledging their marriage is
ending, are interested in a more civil resolution to the issues involved. They
may turn to alternative methods of divorce, such as mediation or collaborative
law. In those cases, or in any case where the parties are reasonably able to
get along, We can act as a "neutral CPA." Rather than each spouse
hiring "dueling accountants," you save time and money by
jointly hiring just one financial expert you can trust to be objective and
committed to helping you settle.
So ask your attorney if hiring a CPA makes sense
in your case. Or give us a call for more information.
