The division of assets in a divorce can be a slow process. The more prolonged this period is, the more unnecessary emotional and financial pressure will be put upon both parties. Forensic accountants are specialists when it comes to investigating particularly complicated financial issues, including valuation of a business in divorce, suspected fraud, commercial dispute resolution and more.
The fair division and distribution of all finances and assets between the two parties in a divorce is often the most complicated and stressful step in the proceedings. This is because of the intricacy and precision involved.
One of the most complex assets to deal with in any divorce is a business. Working out a valuation that both parties are happy with can be difficult. This is where a forensic accountant can be key. A forensic accountant can help value a business during a divorce in many different ways, this includes valuing based on current company assets, factoring in cash flow/gross income/history of debt, the market values of similarly positioned businesses in the same industry, and projected future earnings.
Despite the expertise involved, business valuation for divorce is not a science. It is common for one party to dispute the figure, leading to even more complications and delays to proceedings. Common reasons for a dispute are a perceived exaggerated valuation, belief that the business has been undervalued, information or assets have been hidden leading to a lowered value, etc.
Should a business valuation ever be disputed, forensic accountants will be able to step in and advise you on exactly what steps to make next — this experience is vital in ensuring your best interests remain protected, as well as saving you both time and money.