How Forensic Accountants and Divorce Attorneys Work Together in Complex Los Angeles Divorces
When it comes to divorce in Los Angeles, especially complex divorces, transparency isn’t always a given. One of the biggest concerns for many spouses is whether the other party is hiding money, undervaluing assets, or manipulating income. Even if that is not a concern, it may be that certain financial issues require some accounting, especially if one or both spouses are self-employed. That’s where forensic accountants come in.
These financial experts play a crucial role in uncovering hidden assets, clarifying financial pictures, and ensuring fair division of property. If you’re facing a financially complex divorce in Los Angeles, here’s how forensic accountants can help protect your interests.
What Is a Forensic Accountant?
A forensic accountant is a financial professional trained to investigate, analyze, and trace complex financial data, especially when one party may be hiding assets, self-employed, underreporting income, or failing to fully disclose.
They’re not just “number crunchers,” they’re investigators (though, they are excellent at crunching numbers too!). They follow paper trails, look for red flags, and provide detailed, court-ready reports that help attorneys, judges, and clients understand the true financial landscape.
Why Divorce Attorneys and Forensic Accountants Work Together
If you're already working with a divorce attorney, you might wonder: Do I really need to hire another professional?
Here’s the truth: involving a forensic accountant is often more cost-efficient in the long run. Here’s why:
Cost-Effective Expertise: Accountants often charge less per hour than attorneys, and they know exactly what to look for in financial records. They are trained differently than attorneys.
Credibility: Forensic accountants serve as expert witnesses, not advocates. Their neutral, data-backed reports carry significant weight with courts and opposing counsel.
Settlement Leverage: Solid reports prepared early can support more efficient and favorable settlements, often avoiding litigation altogether.
Legal Guidance: Attorneys help determine what to request and how to use it strategically, while forensic accountants focus on the financial investigation and generating reports such as community property balance sheet, income reports, and marital standard of living reports.
When both professionals collaborate, the result is a well-informed legal strategy, based on facts and reports, that protects your rights and improves outcomes.
An experienced Los Angeles divorce attorney who regularly handles complex or high-net-worth cases will have experience with and relationships with various forensic accountants.
What to Expect When Working with a Forensic Accountant
Your forensic accountant will typically:
Review bank statements, tax returns, and credit card transactions.
Trace funds and look for inconsistencies or suspicious activity.
Analyze business records, payroll, and cash flow (especially for self-employed spouses).
Prepare clear reports explaining their findings.
Potentially testify as an expert witness if the case goes to court.
When You May Need a Forensic Accountant
Consider hiring a forensic accountant if:
You suspect your spouse is hiding money or underreporting income,
One spouse owns a business or has complex compensation structures (bonuses, RSUs, back end pay, royalties),
There are large cash transactions or missing financial records,
You want help clarifying financial facts before settlement negotiations.
Common Ways People Hide Assets During Divorce
Forensic accountants are skilled at spotting red flags like:
Undisclosed bank accounts or credit cards
Transfers of assets to friends or family
Delayed income or bonuses until after divorce
Overpaying taxes or fake business expenses
Undervalued business assets or inventory
Hidden investment accounts, cryptocurrency, or foreign assets
Even in a community property state like California, if a spouse successfully conceals assets during the divorce process, you could walk away with far less than you're legally entitled to.
Protecting Your Financial Future
In Los Angeles, complex divorces often involve creative income structures, complicated businesses, and unique assets like royalties, intellectual property, or real estate portfolios. A forensic accountant helps make sense of the numbers and works with your divorce attorney to ensure you're not leaving money on the table.
Working with a family law firm that has strong relationships with experienced forensic accountants can help you feel confident and prepared.
Final Thoughts
If you’re navigating a high-asset or complex divorce in Los Angeles and have concerns about financial transparency, it’s time to bring in a forensic accountant. The sooner you identify financial red flags, the better your chances of a fair outcome.
Our firm works with some of the most respected forensic accountants in the region and will help you build a strong team from day one.
Related reading: How People Try to Hide Money During Divorce in California (and Why It Usually Backfires)
Our firm focuses on helping professionals, business owners, and individuals with significant assets navigate high-stakes divorces with clarity, strategy, and care. Contact us today to start building a secure plan for your financial future.
Emily Rubenstein Law PC is a full service divorce and family law firm. We proudly serve Beverly Hills, West Hollywood, West Los Angeles, Santa Monica, Culver City, the South Bay, Glendale, Pasadena, Sherman Oaks, Studio City, Encino and all of Los Angeles County.
Give us a call or check out our website:
(310) 750-0827 | www.emilyrubensteinlaw.com