Divorce settlements often involve more than dividing assets and deciding custody arrangements. When significant financial matters are at stake, such as businesses, investments, or tax implications, having a professional who understands both legal and financial aspects can make a substantial difference. An attorney CPA combines these two critical skill sets, offering unique advantages in resolving divorce settlements.
Attorneys like those at Skarin Law Group can attest to the value that attorney CPAs bring to clients facing complicated financial situations during divorce. Here are several ways an attorney CPA can assist in these circumstances.
Accurate Valuation Of Marital Assets
Dividing marital property requires a clear understanding of the value of each asset and becomes more challenging when those include businesses, real estate, investment portfolios, or retirement accounts. An attorney CPA is well-equipped to assess these assets accurately, taking into account their legal and financial implications.
Their ability to analyze financial statements, tax returns, and other documents helps uncover the true value of assets that might otherwise be overlooked. This comprehensive approach allows for a fair division of property, which is crucial for both parties.
Handling Tax Implications Of Settlements
Tax consequences often accompany the division of assets, such as selling property or transferring retirement accounts. An attorney CPA’s understanding of tax law and financial reporting makes them particularly effective in addressing these issues. For example, transferring a retirement account without proper legal and financial guidance can result in significant tax penalties. Attorney CPAs can identify potential tax liabilities and suggest strategies to minimize financial burdens for both parties.
Resolving Business Ownership Disputes
When one or both spouses own a business, divorce settlements become more complex. Determining the value of the business, deciding whether one party will retain ownership, and managing tax implications require a detailed understanding of financial and legal principles.
An attorney CPA can provide critical insights into business valuations, ensuring that all assets and liabilities are accounted for. They can also help structure buyouts or ownership transitions that align with both legal agreements and financial goals.
Uncovering Hidden Assets Or Income
In some divorces, one party may attempt to conceal assets or underreport income to influence the settlement. An attorney CPA has the skills to analyze financial records and identify inconsistencies or red flags.
Their ability to review tax filings, bank statements, and other financial documents helps uncover discrepancies that could impact the fairness of the settlement. This expertise provides clarity and transparency, which is essential for equitable resolutions.
Developing Fair And Practical Settlements
A divorce settlement should be both fair and practical for both parties. An attorney CPA’s ability to integrate financial analysis with legal knowledge allows them to craft agreements that are not only legally sound but also financially viable.
For example, they can recommend spousal support or property division strategies that reflect the current financial situation while considering future implications. This balanced approach helps reduce the likelihood of future disputes and provides a stable foundation for both individuals as they move forward.
Comprehensive Guidance During Difficult Times
The staff at Personal Injury Defense LA know that this is often a challenging process, especially when significant financial considerations are involved. An attorney CPA’s ability to address legal and financial matters in tandem provides a valuable resource for individuals seeking clarity and resolution.
Whether addressing tax implications, valuing assets, or resolving disputes, an attorney CPA offers a level of insight that benefits all parties involved in the process.