In DC divorce cases, discovery helps to identify all marital assets. In cases where the net worth is higher than average, Forensic Accounting Firms in Washington DC, are needed. Accountants in this field are familiar with the two layers of discovery and how to utilize them properly.
The First Layer of Discovery
The first layer of discovery identifies known assets and accounts. The spouses undergo depositions to testify about assets and marital property. Subpoenas are used to acquire financial records when a spouse is unwilling to disclose them fully.
This form of discovery allows the accountants to find accounts in each spouse’s name. This includes assets that are moved to third parties. The accountants discover falsified records and hidden income by investigating hidden assets.
Diligent Investigation of Assets
Jeffrey D Barksy, CPA in Washington DC perform a diligent investigation of assets. This is the second layer of discovery. This includes the transfer of ownership of properties and assets into another individual’s name. These transfers could involve charitable organizations created by the spouse.
False corporations are another opportunity used to hide assets. The owner isn’t identified when the business is established. It lacks the presence of a physical business location. A lack of a board of directors could also indicate fraud. During the investigation, the accountant identifies a bank account that isn’t within the continental U.S. The Bahamas and Cayman Islands are primary locations for these accounts.
Evaluating Overlooked Items
Artwork, furnishings, and collectible items aren’t always appraised during a divorce. It is these items that are often used to hide income. Unless the spouse finds the exact receipt of these items, they could be unaware of their true value. During the discovery process, the actual values of the items are identified. This prevents a financial loss due to lack of knowledge.
Forensic Accounting Firms in Washington DC, aid spouses in divorce proceedings. The purpose of the accountants is to identify hidden assets and income. They prevent either spouse from finalizing the divorce with more than their share of the marital assets. The process ensures that the spouses receive equal portions of the marital estate without error.