Divorce can be an emotionally challenging and legally complex process. This is all the more the case when it involves the division of business assets.
A business valuation can be a useful negotiation tool when discussing how to split a shared enterprise. To ensure a fair and accurate valuation of your business during a divorce, you should know what traits to look for when choosing the right forensic accountant.
Understanding the role of a forensic accountant
Choosing the right forensic accountant starts with understanding their role in the context of divorce. These financial experts dive deep into your business’s financial records to determine its value. They also investigate any hidden assets or irregularities that might affect the valuation.
Seeking the right qualifications
Look for someone with a strong educational background, such as a degree in accounting, finance or a related field. Other certifications like Certified Public Accountant (CPA) and Certified Forensic Accountant (CFA) can also attest to their expertise.
Identifying prior experience
The ideal forensic accountant should have prior experience in business valuation. Look for professionals who have worked on cases similar to yours. This experience ensures they are familiar with the intricacies and nuances of valuing your unique business.
Evaluating communication skills
Effective communication is key when working with a forensic accountant. They need to explain complex financial matters in a way that is easy to understand for you, your spouse and the court if necessary. Ensure your chosen accountant can convey their findings clearly and confidently.
A critical aspect of a forensic accountant’s role is their independence and objectivity. They should remain impartial throughout the valuation process, without showing any bias toward either party. Similarly, a forensic accountant must be someone who will value your privacy at every step of the process.
Statistics indicate that married business owners have a 48% chance of going through divorce. Regardless of what state your marriage is in, though, having a reliable forensic accountant who can give you an accurate business valuation is beneficial.