ABA SECTION OF FAMILY LAW eNEWSLETTER, JUNE 2012
A Column by Members of the AICPA Forensic and Valuation Services Section
By: Jeffrey F. Gibralter, CPA/ABV/CFF, CFE
In a matrimonial matter, forensic accountants are often called upon to assist with tracing various financial assets to verify or support specific claims or to ensure completeness. These types of engagements can become very time consuming, and as a result, very costly for the parties. To help minimize costs and prevent unnecessary delays, it is important for the forensic accountant to request the pertinent documents for the agreed-upon number of years and number of accounts that require analysis.
The documents required depend largely upon the type of asset being analyzed. The most common assets which require tracing in a matrimonial matter include: personal bank and brokerage accounts, business ownership interests, income and real property. Certain documents should be requested and carefully reviewed by the forensic accountant, including, but not limited to:
PERSONAL BANK AND BROKERAGE ACCOUNTS
BUSINESS OWNERSHIP INTERESTS
INCOME OF NON-OWNER EMPLOYEES AND EXECUTIVES
All of the above mentioned documents should be carefully reviewed by the forensic accountant and cross referenced to identify any potential inconsistencies. Additional documents may be required if during the analysis, other assets are uncovered.
It is important to make sure that we as forensic accountants work closely with counsel and have frequent communication to ensure the appropriate documents are requested to target our analysis and provide counsel with the information required to settle or litigate their matrimonial matter in a meaningful and time efficient manner.
Jeffrey F. Gibralter, CPA/ABV/CFF, CFE is a senior manager at the forensic accounting and business valuation firm of Klein Liebman & Gresen, LLC (“KLG”). If you would like to find out more about KLG and our services, please visit our website at www.goKLG.com .