With 38 percent of Canadian marriages ending in divorce, divorce is common reality for many Canadians. While some divorces go smoothly, many do not. Unless a prenup is signed, Ontario mandates that property accrued after marriage, which includes shares, income or furniture, must be divided evenly. Since spouses might be parting with a significant amount of income, they might intentionally underreport, transfer or hide property.
If you or your client suspect this is the case, our team of forensic accountants can confirm if your suspicions are true. Even if a divorce is amicable and parties are being honest, you still might want to know the support that you might be owed or that your children should receive. Lynch & Associates can help you with the divorce-related quantifications listed below.
Identification of Marital Assets and Liabilities
· Marital assets are assets acquired between the date of marriage and the valuation date (e.g. shares). Liabilities are money that a person owes (e.g. loans).
Net worth Estimates
· The difference between someone’s assets and liabilities.
· Determining the economic value of a business. This is helpful if someone owns shares in a company that is a private issuer (does not sell shares on a publicly traded stock exchange).
· An examination of a person’s income and expenses, before and after the separation. These analyses are helpful if you suspect your spouse is underreporting their income and exaggerating their expenses.
Questions for Examination for Discovery
· An examination for discovery permits a party in a civil action to examine another person before trial. It is a crucial part of litigation.
Review of Income Tax Returns and All Financial Statements
· A party to a divorce must complete a financial statement, which is a court form, that sets out their income, assets, expenses and debts.
In-depth analysis of disclosures to find hidden assets and fraudulent activity
· We can confirm your suspicions of fraud. Lynch & Associates knows where to look for hidden assets or how to uncover fraudulent activity.
· Money paid from one former spouse to another spouse, either legally married or common law.
· Money paid from the spouse that spends less time with the child to the one that spends more time to the child. It is meant to cover the child’s expenses.
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