KW Economics prepares fraud and tracing analysis for divorce and marital dissolution matters venued in Pennsylvania: the income, valuation, and tracing questions the matter raises, the records that answer them, and a presentation built to the way Pennsylvania courts decide them. Either party.
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 business valuation is usually the largest and most contested figure in the marital estate, and the valuation date, the standard of value, the treatment of personal and enterprise goodwill, and the normalization of owner compensation each move it materially. Income available for support for a self-employed spouse can differ substantially from the reported figure once personal expenses paid by the business and cash flow retained in it are considered, and the owner compensation adjustment has to be carried consistently into the valuation and the income determination, because the same stream of earnings appears in both. Tracing outcomes depend on the completeness of the account records and on how the governing framework, whether equitable distribution or community property, treats commingled funds and the appreciation of separate assets during the marriage.
Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its inputs and their support in the record.
Highest court: Supreme Court of Pennsylvania. Court system: pacourts.us.
Federal venues: Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania.
Whether Pennsylvania divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.
We issue the final report and provide deposition and trial testimony, support for insurance or restitution claims, and rebuttal of opposing accounting analyses.
The same four steps apply to a divorce and marital dissolution matter venued in Pennsylvania; the governing framework in Pennsylvania decides how each finding is applied. Normalize the business's cash flow for owner compensation, personal expenses paid through the business, related-party dealings, and non-recurring items, listing each adjustment with its source. Value the business or practice as of the date the governing framework requires, under the income, market, and asset approaches as the facts support, and address personal and enterprise goodwill where the framework distinguishes them. Determine each spouse's income available for support from the same normalized statements, including distributions, perquisites, and cash flow retained in the business beyond reported salary. Trace separate property through the account statements step by step, classify commingled funds under the framework counsel identifies, and reduce pensions and deferred compensation to present value with the assumptions stated.
Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its inputs and their support in the record. Divorce and Marital Dissolution cases venued in Pennsylvania are heard in the Court of Common Pleas (General jurisdiction; 60 judicial districts; civil, criminal, family, and orphans' court divisions), with final appeals to the Supreme Court of Pennsylvania. Matters within federal jurisdiction proceed in the Eastern District of Pennsylvania, Middle District of Pennsylvania, and Western District of Pennsylvania.
Whether Pennsylvania divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the Pennsylvania rules to a documented figure.
Request a consultation on Fraud & Tracing or call (201) 343-0700. Plaintiff and defense counsel.