Dividing assets in a divorce can quickly become complicated, especially when the marital estate includes businesses, investments, retirement accounts, or hidden income streams. In these situations, working with a financial expert can be crucial to ensure a fair and accurate division of property.
Here is what you need to know about the role financial experts play in divorce cases.
Why Involve a Financial Expert?
While attorneys are responsible for navigating the legal aspects of divorce, financial experts bring specialized knowledge that helps untangle complex financial matters. Their job is to gather, analyze, and explain financial data in a way that is clear and objective.
Some of the key reasons to involve a financial expert include:
- Valuing businesses or professional practices
- Tracing separate and marital property
- Uncovering hidden assets or income
- Evaluating retirement accounts and pensions
- Determining tax consequences of different settlement options
- Projecting future financial needs after divorce
Without expert input, one or both parties may overlook important financial details that could affect their future security.
Types of Financial Experts in Divorce
Several types of financial professionals can be helpful during a divorce, depending on the needs of the case:
- Forensic accountants investigate financial records to uncover hidden assets, unreported income, or fraudulent activity.
- Business valuation experts assess the value of closely held businesses or professional practices.
- Certified divorce financial analysts (CDFAs) help individuals understand the short and long-term financial impacts of different settlement options.
- Pension evaluators calculate the present value of retirement accounts and pensions to ensure fair division.
Each expert provides a unique service tailored to the financial complexities at hand.
How Financial Experts Support Settlement Negotiations
A financial expert can play a critical role during settlement negotiations by providing clear, credible valuations and projections. Their reports and testimony can offer strong evidence to support a fair division of property and prevent disputes from escalating unnecessarily.
In many cases, having an expert’s analysis upfront can encourage quicker settlements and help avoid costly litigation.
Choosing the Right Expert
Selecting the right financial expert is essential. Look for professionals who are credentialed, experienced in divorce cases, and able to communicate complex information in a straightforward manner. Your attorney can often recommend trusted experts they have successfully worked with in the past.
It is also important to consider whether the expert will be working neutrally for both parties or solely on behalf of one spouse.
Financial issues can make or break the outcome of a divorce. Whether you suspect hidden assets or simply want to ensure an equitable division of complex property, a qualified financial expert can provide the clarity and evidence needed to protect your financial future.
