A recent study for the National Endowment Financial Education revealed that 42% of its married respondents have lied to their spouses financially, whether by hiding accounts, debts or spending habits. The figure highlights the prevalence of financial infidelity in U.S. marriages, which can lead to complex and contentious divorces.
In South Carolina, courts follow equitable distribution laws when dividing assets. This means they will allocate your shared properties in a fair way, but not necessarily 50/50. If you are divorcing here, accurate financial information is critical, particularly if your marriage involves a vast estate. You might need a forensic accountant to help uncover the truth about your financial landscape. Here are some key indicators that suggest their expertise might be necessary in your divorce.
Inconsistent or missing financial records
Gaps in your spouse’s financial records are a major red flag in high-dollar divorces. These may include missing bank statements for certain months, incomplete credit card records or tax returns that do not align with their known income. A forensic accountant can trace cash flows and uncover hidden accounts or assets that might otherwise go unnoticed.
Unexplained changes in income or expenses
Sudden shifts in your spouse’s income or spending patterns could indicate financial manipulation. For instance, if your spouse’s business suddenly reports a profit drop without a clear reason, it might suggest they are hiding or moving money. Moreover, watch out for large cash withdrawals or strange business expenses, as these might be attempts to reduce shared assets. A forensic accountant can help you make sense of these patterns by comparing your spouse’s behavior to industry norms and past actions.
A fair settlement starts with accurate numbers
When it comes to divorce, financial clarity is your strongest ally. Investigating your spouse’s financial infidelity can be emotionally devastating. However, it is an important step in safeguarding your future. Forensic accountants act as your financial detectives, providing you with the knowledge you need to make informed decisions during this difficult time.
