A divorce can have many complex areas of accounting that need investigation and dealing with by a competent accountant. Our fully trained mediators in divorce accounting are totally neutral. Their role is to ensure that everything is out in the open and that both parties receive the same fair treatment.
The mediator will use their training and experience to investigate and reveal proven facts. These financial facts need presenting to both parties in an amicable way. From there your mediator will work with you to create a financial settlement that is mutually agreeable and prevents the need for expensive litigation.
There are often a number of complex financial areas involved in a divorce. There could be ramifications with tax after the couple has divorced and in some cases one partner will be holding back on unreported income or hidden assets.
If there is a family business then it gets even more complex. This will require thorough financial investigation so that everything is out in the open. Your mediator is not trying to discredit either party here. They simply need to uncover all of the financial facts so that the divorce process is expedited and key financial decisions made that produce a win-win result.
It needs appreciation that the financial side of a divorce can be just as complex as the emotional side of things sometimes. Your mediator will kick off proceedings by requesting that each spouse make a full disclosure about the couple’s property and income situation.
The financial representations from both spouses should be identical. There is always the chance that one or the other spouse will deliberately or unintentionally leave out property or income information. Your mediator will use their accounting expertise to investigate the available underlying data so that they can determine how accurate the financial statements they have provided are.
What activities will your Divorce Accountant Undertake?
Your divorce accountant mediator will undertake a number of different activities:
Fact Gathering – your mediator accountant will start gathering financial facts and they will request tax returns to assess if all is well. If there are discrepancies then they will find additional data sources. The identification of any financial issues happens at this stage.
Mediation Accounting – your mediator accountant will take a good look at all of the marital assets, income and liabilities. At this stage there is a careful assessment of the financials to see if there is any unreported income or hidden assets.
Analysis of Finances and Lifestyle – your mediator accountant will check the funds flows between any bank accounts, other assets, money disposition and substantiating the standard of living of both spouses.
Settlement and Tax Implications – your mediator accountant will make an assessment of the tax implications of the final divorce settlement.
Financial Negotiations – because of the extensive financial knowledge that your mediator accountant has they can assist with negotiations and suggest creative ideas to produce a settlement that is mutually acceptable.
Prenuptials – if there is a prenuptial agreement in place then your mediator accountant will assist in interpretation.
Divorce can change your Financial Position radically
Both spouses are likely to have their financial positions substantially altered after a divorce. You need an experienced and knowledgeable accountant to help you through this complex area. You can rely on your mediator accountant to be there for you so that you get the best possible outcome.