Munich Personal RePEc Archive

Achieving Amicable Settlements and Possible Reconciliations : The Role of Forensic Accountants in Equitable Distributions

Ojo, Marianne and DiGabriele, Jim (2013): Achieving Amicable Settlements and Possible Reconciliations : The Role of Forensic Accountants in Equitable Distributions.

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Abstract

This book is focussed on investigating how a proper implementation of forensic accounting tools could serve as a means and channel whereby such techniques as valuations, equitable distribution and evidence could be employed in avoiding unnecessary break ups and emotional breakdowns.

How can courts curb contingency costs of matrimonial litigation when a closely held company is involved? – particularly where such closely held companies' profits can be steered towards greater profits if these companies are encouraged to continue to run (as well as alleviate financial problems which may initially have contributed to financial and marital problems). Given recent statistics which indicate a 50:50 success rate in marriages, should courts not have a role in assisting to alleviate and reduce tax burdens which are peculiar to companies run by couples – where it can easily be proven that these were the sources of financial and eventually, marital tensions? What role could forensic accountants also play in providing financial, valuation and business advice to couples experiencing such business difficulties – and who lack the required access to funds or expertise aimed at restoring the viabililty of their businesses. Would such expertise and advice restore their businesses – and eventully their relationships?

It is a well known fact that financial problems constitute the source of break-downs in many relationships. Whilst other factors may contribute to failures in relationships and whilst some couples may have finalised their intentions and require very little assistance in getting through such painstaking processes, others may have their decisions influenced by court procedures, counselling sessions and the proper application of equitable distribution procedures – such equitable distribution procedure being considered a preferred technique in resolving marital asset distributions than the community property concept.

Further this book highlights factors which need to be taken into consideration – not only in averting unnecessary break-ups, but also in facilitating harmonious and amicable settlements which may eventually pave the way for reconciliation, as well as restoration of broken down relationships. Whilst planning of marital asset distribution should not constitute the focus of any marriage, planning when the need arises may serve not only as a channel whereby a relationship can be restored eventually, but as a temporary means of weathering the storms during the difficult times in the relationship.

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