Forensic accounting during financial remedy

[Free2202]

I applied for Form E because my ex is not interested in splitting any assets and wants me out of the family home. He has been hiding assets since last year and I have little or no information about his finances. I cannot apply for child maintenance because I am not sure of his earnings. He is self employed so there are lots of ways he can hide earnings and assets. The exchange date for Form E is fast approaching and I am interested in knowing if hidden assets and accounts can be detected by forensic accounting. Please help.

Have you asked an accountant or solicitor? Forensic accoutancy certainly is a practice, and you can be quite creative with your own company. That seems like the best way unless there's a glut of them here.

It's probably best not to get your hopes up. Forensic accountants are expensive, and may well not uncover anything useful. It's widely accepted that is a self employed person wants to screw you over in a divorce then it's pretty easy to do that.

I'd wait and see what he discloses, and if you can prove any lies then great. If not, don't waste what money you have chasing shadows.

Forensic accountant usually get involved in very high net worth individuals or companies so they are usually the preserve of the larger firms who charge high fees. If you can afford it, it might be worth asking your solicitor for a recommendation or give one of the large firms (eg Baker Tilly or Haines Watts (no link to me)) a call to get a quote. You will need very deep pockets though. Good luck. Did ur ex ever file annual accounts to the hmrc?

@MrsArchchancellorRidcully

Forensic accountant usually get involved in very high net worth individuals or companies so they are usually the preserve of the larger firms who charge high fees. If you can afford it, it might be worth asking your solicitor for a recommendation or give one of the large firms (eg Baker Tilly or Haines Watts (no link to me)) a call to get a quote. You will need very deep pockets though. Good luck. Did ur ex ever file annual accounts to the hmrc?

Can I ask about your Q at the end … if they didn’t … what are you saying ? … and I mean that politely !! X

Your solicitor will be able to advise on the merit of using a forensic accountant in your case. I understand they don't come cheap, but if your ex is really hiding assets maybe it'll be worth it.

FWIW you don't need to know his earnings to apply for CMS - you just give his name address etc and as much other information as you have. They get the info they need from HMRC. However, if he's self employed it's quite possible that the figures CMS will use don't really reflect his true income. I believe they use the previous year tax return - so I'd actually put in a claim quick before the end of this tax year, in case he's doing things more creatively now with the aim of reducing possible CMS etc.

@MrsArchchancellorRidcully

Forensic accountant usually get involved in very high net worth individuals or companies so they are usually the preserve of the larger firms who charge high fees. If you can afford it, it might be worth asking your solicitor for a recommendation or give one of the large firms (eg Baker Tilly or Haines Watts (no link to me)) a call to get a quote. You will need very deep pockets though. Good luck. Did ur ex ever file annual accounts to the hmrc?

Yes, annual accounts were filed to hmrc.

@comfortablyfrumpy

Your solicitor will be able to advise on the merit of using a forensic accountant in your case. I understand they don't come cheap, but if your ex is really hiding assets maybe it'll be worth it.

FWIW you don't need to know his earnings to apply for CMS - you just give his name address etc and as much other information as you have. They get the info they need from HMRC. However, if he's self employed it's quite possible that the figures CMS will use don't really reflect his true income. I believe they use the previous year tax return - so I'd actually put in a claim quick before the end of this tax year, in case he's doing things more creatively now with the aim of reducing possible CMS etc.

Thanks. I will sort out the CMS application this weekend.

I think when I did it you had to phone first - I did mine over the phone, and they followed up with email. It was really straightforward. I don't know if their phone lines are open at weekend do worth checking. You do hold for a while but the person I spoke to was really helpful.

I asked about accounts as that is the main way self employed people
Are assessed for earnings and child maintenance.

You may need to ask CMS to do a variation - if he's self-employed he may pay himself a minimum amount by PAYE and the rest by dividend. As long as he pays tax on the dividend CMS can also track the dividend payments to do a variation. The initial assessment you will get within a couple of weeks of the claim is based on PAYE only, they then have up to 20 weeks to complete the variation assessment.

@Blahtastic

You may need to ask CMS to do a variation - if he's self-employed he may pay himself a minimum amount by PAYE and the rest by dividend. As long as he pays tax on the dividend CMS can also track the dividend payments to do a variation. The initial assessment you will get within a couple of weeks of the claim is based on PAYE only, they then have up to 20 weeks to complete the variation assessment.

Thanks

Just to provide an update. I was awarded CMS basic pay of roughly £105 even though he earns over 9K. Asked CMS for a variation for his dividend payments.