If your divorce involves a business, complex income, inheritances, or assets that don’t neatly show up on a W‑2, you may need more than a lawyer and a spreadsheet.
We spoke with Jason Soman, CPA (licensed in Florida and New York), who focuses on forensic accounting and business valuation—two areas that can dramatically change outcomes in:
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high‑net‑worth divorces
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business-owner divorces
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cases involving commissions, deferred comp, or variable income
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cases with commingled inheritances or premarital assets
This article explains what a forensic accountant does, when to bring one in, and how it can impact equitable distribution, support, and settlement leverage.
What Is Forensic Accounting (and How Is It Different From “Regular” Accounting)?
“Forensic” simply means within the context of a court of law.
A forensic accountant may do work that resembles traditional accounting—reviewing financial statements, reconciling accounts, analyzing cash flow—but they do it for litigation purposes, such as:
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assisting with discovery requests
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tracing money movement (where it came from, where it went)
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analyzing true income for support calculations
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valuing a business
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preparing reports that can be used in court
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testifying as an expert witness
A key misconception is that “forensic” always means “fraud.” Sometimes fraud is involved. Often it isn’t. Many cases simply require an expert to translate financial reality into something the court system can use.
When Should You Hire a Forensic Accountant in a Florida Divorce?
Jason’s answer was direct: earlier is usually better.
Why Early Matters
When a forensic accountant is brought in at the beginning, they can:
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help target discovery to the documents that actually matter
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narrow the issues (and quantify what’s worth fighting about)
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reduce wasted legal fees caused by financial uncertainty
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identify ROI (“Is this fight worth the cost?”)
It’s common for cases to drag on for a year or more simply because neither side has clarity on:
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true income
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the value of a business
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what assets exist
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what is marital vs. non‑marital
Early forensic involvement often shortens the life of the case by reducing financial fog.
“Is the Juice Worth the Squeeze?”: Using Forensics to Avoid Expensive Dead Ends
One of the biggest values a forensic accountant provides is ROI reality.
Sometimes a spouse believes:
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income is being underreported
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money is being hidden
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financial disclosure is incomplete
A forensic accountant can investigate and answer the “so what?” question:
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Does it move the needle meaningfully on alimony or child support?
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Does it change equitable distribution enough to justify the fees?
In some cases, a supposed income discrepancy might change child support by $15—not worth months of litigation. In other cases, correct income or business value changes the outcome by six or seven figures. The goal is focus: spend time and money where it actually matters.
Why Your Divorce Lawyer Can’t “Just Do the Forensics”
We’re often asked: “Why can’t my attorney just handle this?”
If the finances are simple (W‑2 income, a house, basic bank accounts), attorneys can often manage. But when you’re dealing with:
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businesses with messy or nonexistent books
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K‑1 income, deductions, depreciation
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personal expenses paid through a business
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commissions not yet paid
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variable income or cash-heavy industries
…forensic accounting is its own specialty. Just as important: forensic accountants operate under professional standards as neutral experts, even when retained by one side. Their credibility and methodology carry weight in court in a way a lawyer’s financial interpretation often cannot.
Business Owners: Why “Income” Is Often Not What the Tax Return Says
For business owners, the tax return is often a starting point—not the finish line.
A business owner can control how compensation appears by:
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choosing W‑2 salary vs. profit distributions
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paying personal expenses through the business
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categorizing spending in ways that reduce taxable income
In divorce, the analysis often becomes:
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What is true income?
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What expenses are legitimate business expenses?
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What expenses are personal lifestyle support?
Example: The Business Pays the Mortgage
If the business pays a $5,000/month mortgage, the tax return may treat it as a “business expense.” In a divorce context, forensic analysis may show that payment is effectively income to the owner because it funds personal living costs. Forensic work also examines how it’s recorded in the books:
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Is it booked as a business expense (reducing income)?
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Or booked as owner draw/compensation (still income, just classified differently)?
That classification can change:
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support calculations
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business valuation outcomes
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settlement leverage
How Businesses Are Valued in Divorce
Jason described three core valuation approaches:
1) Asset Approach
Values the business based on its net assets:
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assets minus liabilities
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often the “floor value” (liquidation baseline)
2) Market Approach
Values the business based on comparable sales:
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what similar businesses sell for
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uses industry multiples (which vary widely by business type)
3) Income Approach
Values the business based on expected future cash flow:
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present value of future earnings
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often used when the business is cash-flow driven
Different businesses require different methods. A company holding real estate may lean asset-based. A cash-flow service company may lean income-based.
The Hot Topic in Florida Divorce: Goodwill
In valuation, the difference between asset value and income/market value is often “goodwill.”
Enterprise Goodwill vs. Personal Goodwill
This distinction matters because some goodwill may be treated differently in equitable distribution.
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Enterprise goodwill: value that exists independent of any one person (transferable/sellable)
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Personal goodwill: value tied to a specific individual’s reputation/relationships (often argued to be non‑distributable)
A Key Myth: “If It’s a One-Person Business, It Has No Value”
Even if a business is heavily dependent on one person, it may still have value, such as:
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cash in accounts
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accounts receivable
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work in progress
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equipment, inventory
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contracts
Forensic valuation can separate:
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tangible value
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any enterprise goodwill
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and isolate personal goodwill components when applicable
Premarital Businesses, Retirement Accounts, and Inheritances: Tracing and Appreciation
Forensic accountants are often needed to answer:
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What portion is premarital/non‑marital?
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What portion is marital appreciation?
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What got commingled?
Common examples:
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a premarital business that increased in value during marriage
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a 401(k) with contributions both before and during marriage
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inheritances received during marriage but mixed into joint accounts
The challenge is often records—especially when the timeline goes back 10+ years. The more “scrambled the eggs” (money moved across accounts, assets bought/sold/reinvested), the more valuable tracing analysis becomes.
Lifestyle Analysis and Support: What It Can (and Can’t) Do
In higher-income cases, alimony may be driven more by need than by the income difference. A forensic accountant typically does not give legal opinions like “this spouse should receive X in alimony.” But they can quantify:
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true income
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reasonable living expenses
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spending patterns and marital lifestyle
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financial affidavit support
The point is to give the court and counsel numbers grounded in documentation, not guesses.
Neutral Forensic Accountants: When Both Spouses Hire One Expert
Not all forensic involvement is high-conflict.
In amicable or collaborative divorces, spouses sometimes hire a neutral forensic accountant to:
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value a business
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organize the marital balance sheet
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educate the less-involved spouse
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reduce duplicated expert costs
Pros
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cost-sharing
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transparency
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faster resolution in many cases
Cons
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less opportunity for strategy
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either spouse can still disagree and hire their own rebuttal expert
Neutral arrangements often work best where both parties genuinely want clarity and closure.
The Bottom Line: When in Doubt, Consider a Forensic Early
If your divorce includes any of the following:
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a business (even a “small” one)
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commissions, bonus-heavy pay, or variable income
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suspicion of underreported income
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commingled inheritance funds
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premarital assets that appreciated during marriage
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complex support questions (high income or high lifestyle)
…a forensic accountant may be the difference between:
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settling with confidence, or
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settling with doubt you can’t shake for years.