Yet when parents divorce or separate, custody arrangements are more likely to reflect life as it was inwith the mother as the primary caretaker and the father working to help support a child he seldom sees.
It may also affect the division of assets, particularly if there are income-producing assets to be divided. In each of these instances, properly determining the income of the party is critical to getting a fair and equitable settlement, maintenance award, or child support award. Until you have accurate numbers, the attorney may find it very difficult to decide what is fair or in the best interest of the client.
It is not unusual for a closely held business to suspiciously suffer from declining revenue and profits once a family law case comes to fruition. The spouse in control of the business may state that the economy is negatively affecting the business, or that other conditions such as competition or changing technology are the cause for a decline in the financial condition of the business.
Is it a coincidence that a thriving business just happens to suffer a decline at the precise time that a family law case is initiated? Of course it is no coincidence, and the numbers must be investigated to present a true financial picture to the court.
Poor bookkeeping Failure to disclose financial documents and details Lying about the finances Hidden income under the table cash sales, etc. Commingling of personal and business finances Complicated businesses Movement of funds between multiple business interests Intentionally confusing or incomplete paper trails Access Denied Universally, the most problematic part of thoroughly evaluating the income and assets of the owner of a closely held business is the lack of financial documentation.
If documents are produced, they are usually provided piecemeal, so a complete financial picture can never be evaluated. It is important to track the document production and demand that missing statements be provided. Even one missing statement could drastically change the case, as that single missing statement might contain a transaction that could lead to the discovery of hidden assets or income.
It is not uncommon for documents to be discarded, destroyed, or purposely withheld. Even when substantial documentation is produced, there may still be holes in the financial picture due to things like unreported income and cash sales.
Unreported employee perks or personal expenses paid by a company are additional items that may be missing from the financial picture provided by the other side. This is where the forensic accountant can be very valuable to the divorce attorney.
A properly performed lifestyle analysis can go a long way toward proving the existence of income and assets. It is important that your expert be a true expert, however, with a strong account background, preferably holding a CPA license, having provided expert testimony on a regular basis, and being well-versed in the nuances of lifestyle cases in family law.
Lifestyle Analysis Lifestyle analysis is not only used in family law cases. It is often used by government agencies and defense counsel in cases such as money laundering and tax evasion. Wherever there is potential for unreported income, a lifestyle analysis may be one way to prove that the target had undisclosed earnings.
If there are differences between the living expenses and the known income, they may be attributed to concealed income. The goal is to compute the cost of the lifestyle of the target and determine whether the reported income is sufficient to fund this lifestyle.
In a simple lifestyle analysis, we add the known expenses such as groceries, mortgage, auto lease, insurance, credit card payments, income taxes, and the like.
The total spending is then compared to known sources of funds, such as wages, bonuses, dividends, gifts received, and loan proceeds.
The key is to include all sources of income and all the ways the subject may be spending money. If the spending during the period under analysis exceeds the known funding sources, then it is likely that there is another source of income.
The logic is simple:In the period since , the predicted change in divorce and separation is close to the change that actually took place. This analysis is not a pure study of divorce and separation, but rather a study of the combined effects of divorce, separation, and remarriage.
Possibly the biggest change to divorce law in the United States in its history came with no-fault divorces in the ’s. Up until now there still had to be a party at fault. The Proceedings In Divorce Law Has Been Changing May 10, alvine Divorces are happening more and more frequently and with all of these new cases, issues are .
Divorce law was very reactionary and has been throughout the past years aside from a few isolated cases. It is still adapting to a growing trend however while the stigma of divorce has largely vanished in many places the law is still trying to keep up.
Nov 26, · Divorce Laws: Time for a Change The Lone Ranger husband is not the easiest to live with. But I maintain my opinion that the majority of men want to . We are not a law firm or a substitute for an attorney or law firm.
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