Fraud and tracing analysis applied to divorce and marital dissolution litigation: methodology, deliverables, and case-specific considerations.
In a divorce the tracing work follows separate property contributions and marital funds through accounts and assets, and where one spouse controls a business, examines whether income has been diverted or understated. The economist follows each contribution from its source through every account and transaction to its current holding, documents each step, and identifies transfers to third parties, unusual withdrawals, and personal expenses run through a business. Where the records run out, the report states the point at which tracing stopped rather than assuming a result.
Forensic accounting for embezzlement, misappropriation, and financial statement irregularities. The work reconstructs the flow of funds through bank, ledger, and payment records, traces diverted assets to where they came to rest, quantifies the loss for each scheme identified, and documents the evidence trail so it can support a civil claim, an insurance recovery, or a referral to authorities.
The analysis consists of the determination of each spouse's income available for support, including the cash flow a self-employed spouse draws from a business beyond reported compensation; a valuation of any closely held business or professional practice as of the date the governing framework requires; the tracing of separate property contributions and marital funds through accounts, real estate, and investments; a lifestyle analysis where the marital standard of living is at issue; and the present value of pensions, deferred compensation, and other assets that pay out over time. The drivers are personal and business tax returns, financial statements and general ledgers, bank, brokerage, and retirement account statements, compensation and benefit records, and account histories long enough to follow the funds at issue.
We issue the final report and provide deposition and trial testimony, support for insurance or restitution claims, and rebuttal of opposing accounting analyses.
As far as the account statements reach. The economist follows the separate contribution through each account and transaction and documents the path. Where the records end, the report identifies the point at which tracing could not continue rather than assuming a result.
Transfers to accounts or entities not disclosed, cash withdrawals without a matching use, personal expenses paid by a business, and revenue that appears in bank deposits but not in the books. Each finding is tied to the records that show it.
Request a consultation on Fraud & Tracing or call (201) 343-0700. Plaintiff and defense counsel.