forensics
Better Property Settlement in Divorce
Friday, August 20th, 2010 | litigation, tax | No Comments
We’ve heard it said that the second most contentious issue in a divorce (after the children) is the property settlement. One side may resort to unusual measures to reduce the property settlement, while the other side may be seeking revenge or punishment through the property settlement. The intense emotions complicate the process of determining an equitable settlement.
We provide services to attorneys in all types of cases with financial issues. They may involve valuation of a family business, forensic accounting to aid in the process of ascertaining what assets are available for the settlement, and calculation of the needs of the spouse and children for maintenance and support. We also advise about the tax implications of various settlement options. Answers to all of these questions are vital in coming to an equitable settlement.
Our role varies with each case. For example, in a recent case, we assisted with discovery by ascertaining the true value of some marital assets and performing due diligence on the couple’s finances. With this improved information, the attorney was able to negotiate a significantly better settlement for his client than the initial offer. This is just one of the many ways we help improve results for our clients.
C.S.I. - Accounting
Tuesday, June 29th, 2010 | litigation | No Comments
I don’t know that I see a TV show in our future, but forensic accountants follow the money trail in the same way crime scene investigators follow the trail of the murder suspect to build a case. This area of our practice has received more press recently as the Ponzi schemes of Bernard Madoff and others were exposed during the recession. Karen Hellmund and Van Elkins are certified in financial forensics (CFF) by the American Institute of CPAs, and Van has provided expert witness testimony in several cases that necessitated forensics to uncover financial facts and evidence for the court.
We are told in this blog that Ponzi schemes happen more often in financial bubbles as investors abandon healthy skepticism to chase higher returns. When the bubble bursts, the investors discover that their investments have disappeared when they try to withdraw their funds, exposing the fraud. The FBI, SEC, and Commodity Futures Trading Commission are investigating many more securities fraud cases and filing more complaints than they did before the recession as various schemes come to light.
Although the investigations are most often led by law enforcement officials, forensic accountants handle the highly technical task of following the money. Through banking records and other documents, they build a case against the perpetrator and calculate the amounts of money involved through cash flow analysis and other techniques. Their work is essential to building a concrete case against the scammer and in determining how much was lost by each victim.