Following the Money in Divorce: Forensic Accounting and Valuation in High Net Worth Divorces

Course Description

This session equips family law attorneys with an understanding of how their high net worth divorce cases intersect with the skills of forensic accounting and valuation experts. Forensic Accounting experts assist in proving hidden assets/income, tracing marital assets, tax-impacting marital assets, and explaining complex assets such as carried interest and trusts to the court. Valuation experts value closely-held businesses and other niche assets in divorce proceedings. Attorneys will leave with a working framework for discovery strategy, expert coordination, and trial presentation of financial concealment evidence.

Principles

• Forensic Accounting, Asset Tracing, and Discovery of Hidden Wealth Identifying undisclosed assets and income, tracing marital and separate property, analyzing complex financial transactions, and developing targeted discovery strategies to uncover financial concealment.
• Business Valuation and High-Level Valuation Principles Understanding valuation methodologies for closely held businesses and other specialized assets, assessing expert assumptions, and effectively evaluating valuation evidence in divorce proceedings.
• The Economics of the Double Dip Examining the potential overlap between business valuation and income available for support, understanding the economic implications of double counting, and evaluating how these issues affect equitable distribution and support determinations.
• Executive Compensation and Complex Financial Interests Analyzing carried interest, deferred compensation, equity-based incentives, trusts, and other complex financial arrangements to determine their ownership, value, income implications, and treatment in divorce.
• Tax Implications and Effective Presentation of Financial Evidence Evaluating the tax consequences of asset division and valuation decisions, coordinating with forensic accounting and valuation experts, and presenting complex financial findings clearly and persuasively to the court.
• These five principles emphasize the course’s central objective: helping family law attorneys follow the money, uncover and value complex assets, understand the economic and tax consequences of divorce, and translate expert financial analysis into effective litigation strategy.

Syllabus

1. Forensic Accounting and Asset Tracing Purposes and Procedures
2. The Economics of the Double Dip
3. High Level Valuation Concepts
4. Executive Compensation and Other Issues
5. Tax Issues Relevant to Divorcing Couples