Divorce Accounting: Why You Should Consider It

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Some of the hardest and more often, stressful decisions you have to make in divorce are the ones that involve you and your spouse’s finances. These can have long-term effects on all of your financial transactions, from paying debts to providing for your children if you have them.

Why Divorce Accounting Is Something you need to Consider

Does divorce accounting sound too business-like to you? Well, in a way, it is. The moment you affixed your signature to your marriage contract made your union legal and binding. On the other hand, once you sign documents that pertain to the divorce means that you agree to the dissolution of that contract.

But why should you really think about divorce accounting? What factors or conditions might influence your decision to go for it?

1. When there is question of a secret bank account.

When you exchanged vows, you and your spouse agreed to share each others’ lives – that included your home, money, business and other properties. So you did – you shared your lives and properties together and even had joint bank accounts.

But you noticed something peculiar the moment your marriage went sour. Your joint bank statements show that your spouse has been withdrawing funds on a frequent basis – for reasons that vary from the mundane to the impossible. Confronting him/her on the issue might only lead to frustration and more problems, as your spouse denies that he/she intentionally siphoned the money to a hidden account. It will take considerable time and effort to prove that your spouse actually did it.

By getting forensic accounting services, you will get all the necessary information about that hidden account and your spouse’s other assets as well.

2. When you need to work out your 401k funds.

Yes, you also have to decide about your retirement plan, because technically, your spouse has a right to it too. However, 401k plans are one of the most difficult plans to decipher. Although you will have several options on how to divide it equitably with your spouse, you will learn that each option has its own share of pros and cons. Which one will be best for you? A divorce accounting specialist can show you which option will work out best for you.

3. When your spouse suddenly declares that his business has gone bankrupt.

Yes, there are instances when businesses actually go bankrupt; but what should warrant your attention is when your spouse suddenly declares that his/her business, which has been earning revenue for the longest time ever, hasn’t been that good for the past years or months. Chances are, your spouse may be maneuvering it so that he/she can keep it for himself/herself.

Business valuations experts have the skills, experience and connections needed to investigate and provide proof of the actual situation of your spouse’s business. And if necessary, they can testify for you in court.

These are just some of the reasons why you may need divorce accounting. If you live in Denver and your case fits any of the above, visit a Divorce accountant’s office in your area.