You might be wondering what are Valuations and Forensic Services? In simple to follow terms, these 'sexy' financial issues in high-net-worth divorce cases are addressed by the one and only Karolina Calhoun, CPA/ABV/CFF, Vice President at Mercer Capital. Karolina has been involved with hundreds of valuation and litigation support engagements in various industries on local, national, and international levels. She also provides forensic and valuation services for family law matters.
So, in a nutshell, she is one of the most qualified people to turn to if your spouse has a successful business. And you are divorcing. And you are scared and uncertain of where to turn or what to do.
She also provides expertise in the following:
-Alimony and division scenario analyses at a point in time and over life accumulation (Alimony Pay & Need Analyses)
-Division of marital estate and understanding liquidity of underlying assets
-Other forensic services like tracing, income determination, searching for hidden assets
-Economic and financial damages studies
Some examples of situations Karolina explains:
1) Although the underlying facts and circumstances vary so much from client to client, it is great to have an expert overview of the more common issues that arise in High-Net-Worth divorces. For example, think about if the husband is a business owner and happens to pay himself through the business. How then do you determine actual income for alimony and child support?
2) If the business has an asset worth or merely a vehicle of compensation? (Think about an LLC, which is a flow-through entity for an MD's medical directorship pay. Is that worth anything, or is it just a vehicle by which the doctor gets compensated?)
3) Another significant consideration in divorce is the liquidity aspect, as many business assets are a majority of the total marital estate. Karolina discusses potentially creating equalizations of all other assets and, in turn, raising the question of liquidity while considering potential alimony needs and abilities too.
To learn more about her firm:
Valuation | Forensic Services | Litigation Support | M&A Advisory