The Benefit of Using a Forensic Accountant in Divorce Cases

One of the primary objectives in a divorce is the division of marital property , which includes all
assets and liabilities accumulated during a marriage. An experienced divorce attorney can help with property division however, when it comes to complicated financial assets a forensic accountant can be invaluable in assisting an attorney with a complex financial situation. [Read more…]

What Is Business Goodwill?

The notion of goodwill has existed since mankind first entered into commercial activity. In ancient Egyptian bazaars, merchants knew the location closest to the city gates would provide
the best opportunity to sell goods. [Read more…]

Watch for “Double-Dipping” In Divorce Cases

Double-dipping is a phenomenon that happens in many divorce types of valuations. This typically happens when in the valuation, “normalizing adjustments” are made for salaries that have been drawn out of the company in order to reduce the profits for tax purposes. [Read more…]

What Are the Various Uses for Valuation?

Business valuations are critical for businesses of any size–and not just when a business is being bought or sold. Some common uses of valuations include: [Read more…]

Hiring a Forensic Accountant During Your Divorce

The dreadful “D Word.”

Divorce is never easy, but in today’s world, it is all too common, becoming an industry within itself. While the pain and heartache that attach themselves to a separation can be difficult to navigate through, complicated finances usually comprise a large bulk of the dispute. [Read more…]

What Is the Difference between Enterprise Value and Equity Value?

Sometimes people use the two terms interchangeably. However, for legal purposes there may be a significant difference in the two terms. Let’s assume your client is involved in a divorce action, and it is important to know the value of the business for settlement purposes. [Read more…]

Forensic Considerations In Divorce

When representations made by an opposing spouse appear questionable, a CPA/CVA/CFE may be engaged to test the financial representations by performing forensic procedures. For example, a family incurs annual living expenses of $90,000 and the earner spouse claims to make only $40,000 per year. [Read more…]

Is the “Capitalization of Excess Earnings Method” Reasonable for Determining Goodwill in Divorce Valuation?

In divorce valuations, no sale exists to measure the price paid for the business, so a residual method is not appropriate when parties with adverse economic interests cannot agree. Many times, [Read more…]

The Attorney/Valuator Partnership in Divorce Cases

Equitable distribution in divorce causes the need for emphasis to be placed upon the economic aspects of marriage. This includes the valuation and division of marital property, as well as any resulting tax consequences. This economic emphasis in divorce proceedings [Read more…]

Divorce Valuation: Should Discounts for Loss of a Key Person Be Considered?

In making a divorce valuation, it is generally not appropriate to apply a discount for the loss of a key person if there will be no change in management and no key people will be leaving the company. The divorce value is generally measured [Read more…]