Dividing assets in a divorce gets complicated when large amounts of wealth are involved. Forensic accountants help by analyzing financial records, finding hidden assets, and valuing businesses and investments. Their work ensures both spouses receive a fair share of marital property.
Finding hidden assets
Some spouses hide assets to avoid sharing them during divorce. Forensic accountants investigate bank accounts, business records, tax filings, and investments to uncover missing funds. In Colorado, state law requires both spouses to fully disclose their finances. If someone hides assets, they could face legal consequences.
Valuing businesses and investments
Owning a business, stock options, or real estate makes property division more challenging. Forensic accountants determine the true value of these assets by reviewing financial statements, market trends, and tax records. Colorado follows equitable distribution, meaning the court divides assets fairly, not equally. A correct valuation helps ensure a fair outcome.
Separating marital and individual property
Some assets belong to one spouse, while others count as marital property. If a couple mixes separate and marital funds, dividing them becomes difficult. Forensic accountants examine financial records to trace where money came from. Colorado law treats assets gained before marriage or through inheritance as separate property. However, if those assets grow in value during the marriage, the increase could become marital property.
Presenting financial evidence in court
Forensic accountants create reports and testify in court to explain complicated financial matters. Their findings help judges and mediators make informed decisions. In high-asset divorces, their expertise prevents financial manipulation and ensures fairness in asset division.