Matrimonial Disputes
There are four main areas where expert forensic accountants can assist in matrimonial disputes:
i. Valuing loss of pension rights on divorce
Where no transfer value has been provided (which often arises in occupational schemes) we can value the wife's loss of pension rights on divorce by considering her loss of death in service benefits, her loss of post-retirement benefits and her loss of widow's benefits. Each of these benefits are valued and we provide a clear report showing the wife's loss of pension rights on divorce. Pension splitting may at some time in the future become an option, but until then, if the parties want a clean break, then the only way of valuing a pension where no transfer value has been provided is to come to a pension expert.
ii. Valuing businesses, companies and shareholdings
We have extensive valuation experience, which has been tested and accepted in Courts throughout the country, and we are happy to provide detailed valuation reports for businesses, companies, shareholdings and partnership interests. There are four methods of valuing a shareholding in a company, being adjusted net assets, price earnings, dividend yield and dividend valuation model, and some or all of these are considered before a valuation is placed on any particular company or shareholding. Our valuation reports can range from a two page brief report to a 30 page (or more) detailed report, depending on the circumstances. If you have a matrimonial client who claims that the spouse has not properly declared the value of his or her assets, then please refer the matter to us - we are valuation experts.
iii. Commenting on the true income of the spouse shown by the Accounts
Accounts can take various forms, such as Income and Expenditure Accounts, Accounts for the shareholders, Accounts filed at Companies House, Accounts prepared for directors, etc and lawyers are often uncertain what figure should be taken as a clear indication of the spouse's income shown by the Accounts. As forensic accountants, we are very experienced in analysing all forms of Accounts and in providing brief reports setting out exactly the income of the spouse shown by the Accounts. In these reports we also comment on any benefits that should be taken into account when assessing the spouse's income. Some spouses who are getting divorced may seek to show a low level of earnings from their company, but there may be a correspondingly high level of benefits, which can be determined from the Accounts after forensic analysis.
iv. Commenting on the borrowing ability of the spouse to raise a lump sum
The ability of a spouse to raise a lump sum in order to make a capital settlement is often fundamental in a matrimonial case. We have extensive experience on advising on the ability to borrow money against the income and assets of the parties, although the ability to borrow money to raise a capital sum inevitably depends on the financial circumstances of each individual.
