FORENSIC ACCOUNTING IN MATRIMONIAL DIVORCE James A. DiGabriele, Editor (DiGabriele, McNulty & Co.)
	ISBN 1-930217-12-9

SELECTED EXCERPTS

Forensic accountants have emerged as the key players in divorce litigation; whether they are testifying in the Trial Court, or assisting the parties and their attorneys in settlement negotiations.

Hidden property is property that belongs to the marital estate and whose existence has not been disclosed to the client.

Understanding that the main goal in applying the formula approach is to quantify the subject company's intangible assets, the valuator should select a reasonable compensation that best allows for the isolation of the intangible value. ...   It is important to remember that "comparability" does not necessarily mean "perfect match." In many cases, it may be impractical or impossible to find a perfect match for a replacement compensation. At the same time, analyzing the underlying characteristics of the subject practitioner allows the valuator to select a replacement compensation that is both reasonable and defensible. ...   The valuator should select replacement compensation that is comparable in terms of ...

This was noted when the backs of cancelled checks were reviewed while husband's deposition was taking place.

... finding unreported income and hidden assets is not a matter of guesswork. While success is never guaranteed, the use of certain techniques may produce successful results. Here are a few techniques to consider ...

This is not as ridiculous as it sounds, because unreported income must be proven, and so the proof should exclude that possibility to the extent possible.

An increase in value of exempt or separate property may be marital property. This is one of the most controversial topics relating to distribution of marital property.

Collaborative divorce is the first alternative dispute resolution method that provides neutral professionals to assess the couples' financial needs and the childrens' needs.

The question, no matter how important, becomes irrelevant if the response is not accurately understood.

The fact that internal controls may be weak in a small business environment does not preclude the necessity of determining the reliability of the books and records. Every business owner has a method of conducting business and safeguarding business operations.

With the appropriate evidence and testimony though, the presumption can be overcome in court.

Complications rapidly arise when the funds themselves are co-mingled.

The following is a list of suggested items that might be included in a notice to produce ...

An absence of these payments will lead you to ask how and by whom these expenses were paid.

... the process of business valuations is a fluid concept. The value of a business at the commencement of a divorce may not be the same as at Trial or at settlement ...

... payors are able to control the quality and quantity of disclosed financial information, thus presenting a reduced financial picture for the trier of fact.

The following characteristics identify substantive differences between a divorce valuation and a closely held company with a willing buyer ...