Accounting is a topic that can frighten otherwise brave professionals. All the asset, liability, income, and expense talk can be overwhelming if the listener is not trained in the field of accounting. The best forensic accountants are able to present financial issues in litigation so that they can be understood readily. Attorneys, judges, and juries often lack an accounting or finance background, so being able to break down financial topics in a way that is easy to understand is essential for forensic accountants.
How can a family law attorney determine whether a lifestyle analysis is needed in a divorce case? A suspicious spouse may be all that is needed to begin a lifestyle analysis; however, a more objective basis for undertaking the lifestyle analysis is preferred. This chapter discusses numerous red flags that may indicate hidden income, hidden assets, or other financial irregularities.
Finding hidden sources of income is important as it relates to spousal support. However, the discovery of income streams can also influence the division of assets. If one spouse has a larger income stream than previously disclosed, that spouse may have less need to receive assets divided during divorce. Clearly, the discovery of hidden income can significantly impact the financial outcome of a divorce or child support action.