When a spouse owns a business, divorce in New Jersey can become more complicated. Questions often come up about what the business is worth and how much income it really produces for purposes of alimony and child support. That’s where a forensic accountant comes in. A forensic accountant looks beyond tax returns and helps:
- Value a business using accepted financial methods.
- Analyze income by reviewing expenses, bank accounts, and lifestyle.
- Identify hidden income or personal expenses that may run through the business.
- Testify in court if needed, so the judge has a clear financial picture.
Choosing the Right Expert
In New Jersey, not all accountants are equipped for divorce work. You need to look for someone who:
- Is a CPA with credentials in valuation or forensics (like ABV, CFF, or CVA).
- Has family law experience and knows how NJ courts handle support and equitable distribution.
- Can explain numbers clearly in reports and is able to effectively testify if needed.
- Works well with your attorney to build a strong case.
Joint or Separate Experts
Sometimes couples agree to use one joint forensic accountant, which can save money. In contested cases, each side may hire their own expert. If your divorce involves a business or complex income, a forensic accountant can be key to making sure support and property division are based on accurate numbers.
The family law team at Cohn Lifland works closely and routinely with forensic experts and will help guide you early on in your matter about whether bringing in an expert is right for your case and will help you choose the right forensic expert if one is required.