An Accountancy Corporation
In the previous issue of Forensic Accounting Today, I consisely clarified the key reasons why Forensic Accountants request certain documents for business valuations. These included financial statements, tax returns, general ledgers and journals, paid bills, bank statements, canceled checks and brokerage statements, income tax audits, and stockholder and director minutes. (If you do not have…
The valuation and distribution of marital property is typically one of the most difficult and arguable issues to be dealt with in a divorce proceeding. The process can become considerably more complicated and expensive when the marital community owns an interest in a business. In such cases, a Forensic Accountant is often hired by the…
Frank Bonvino’s Appeal Frank Bonvino based his appeal of the trial court’s decision on the contention that there was no evidence he transmuted his separate property to community property. By plain language of this statute, Family Code §2640 applies to separate property contributions that are traceable from a community property asset at dissolution. Section 2640…
The fiduciary duty of each party involved in the dissolution of a marriage requires full disclosure of documents and information that are pertinent to their case without being requested. This obligation includes the distinct nature and valuation of all assets and debts in which the community has or could have an interest or for which…
The standard used by the courts in California to determine spousal support payment amounts is designated by the California Family Law Code as Marital Standard of Living (MSOL). Marital Standard of Living is considered by the courts to be a general description of the financial place in life the parties achieved as of their date…
Establishing the value of a life insurance policy can be one of the more muddled issues to deal with when determining property division. Although there are several types of life insurance policies, not all forms give rise to property division issues. Generally, there are two categories of life insurance you need to consider— whole life…
In the State of California, retirement benefits are considered a form of employment compensation. Thus, the community estate owns the pension rights that pertain to employment during the marriage. This holds true regardless whether the pension benefits have vested or matured. The division of pension benefits between the separate and community estates must be “reasonable…
One of the most significant challenges attorneys usually face in divorce cases concerns issues related to the family home. Should your client buy out the other party? Should your client allow the other party to buy out the home? Would it be better if the parties sell the home and split the proceeds? Or, perhaps…
In California, marital standard of living is usually determined by the actual income and expenditures of both parties. However, in some cases, calculations may turn out exceptionally high because both parties lived beyond their means or one of the individuals continually worked excessive hours. When it is clear that the couple lived above its means,…
In case you are not aware, during July 2011, the Internal Revenue Service issued Notice 2011-70, which made a significant change to stipulations for individuals looking for spousal relief under IRC 6015(f). This notice may help you protect your clients from liability for either underpayment or nonpayment of taxes caused by dishonesty by their spouses. …