Forensic Accounting Support for Family Law

Daniel Rands is a forensic accounting expert with extensive experience in supporting Family Lawyers. He undertakes a variety of roles to provide a full range of forensic accounting support for Family Law teams.

Kate Mooney | Barrister and Accredited Mediator

Consulting Expert Forensic Accountant – Family Law Adviser

Daniel Rands has particular expertise as a consulting forensic accountant or “shadow expert” adviser.

A consulting forensic accountant can help the legal team frame instructions to another expert, identify issues for clarification in a report, design the questions of a single expert as is allowed under the Rules, and assist in identifying areas of the report for cross-examination questioning.

One feature of the single expert system which provides business and entity valuations is that there is no inherent process for peer review of these expert reports and opinions. If large amounts are at stake, if the business arrangements are complex, or if the legal team is unsatisfied with aspects of the report, having it peer reviewed can bring either comfort or support for corrective action.

Daniel has developed an approach for second opinions of single expert valuation reports which is cost efficient and explains the opinions and conclusions in a way clients can understand. The approach also identifies contentious areas and those warranting further investigation.

On many occasions, a client may not understand the business structure or the nature of assets held in the family business or entities.

In these cases, the second opinion approach can provide an analysis of the structures, how money flows through business and asset holding structures, and what assets exist.

Valuations of Businesses and Entities

Appointments as a single expert can be accepted, and reports can be provided within a specified time frame. These provide an explanation of the methodology and, to the extent considered applicable, will include the ‘value to the owner’ basis of valuation. Flexibility in the process exists, and the report can be presented to instructing solicitors and their clients.

Providing clients with the ability to have the report explained and to ask questions can assist understanding and acceptance of the process and conclusions of the report.

Daniel has often found that a client’s understanding of the applicable valuation methodology and considerations goes a long way towards reducing the distress associated with a difference between the report’s conclusions and their expectations of value.

Family Law Settlements

Sometimes the client may be offered a settlement, and it is essential to understand whether it is within an acceptable range or whether it is too low. Such offers may be accompanied by an accountant’s report or opinion of value, and it is important to understand whether the report has been prepared on a reasonable basis.

Settlements can involve extensive taxation implications, and sometimes the taxation implications asserted by the other side are incomplete or contingent. It is essential to understand the full impact of taxation on any settlement and how offsets, elections, and structuring can reduce the taxation cost associated with a settlement.

Daniel has extensive experience in assisting legal teams with structuring settlements where the Australian Taxation Office is an interested party, or may become so, where the assets and asset holding structures are complex, and where taxes other than capital gains tax may be applicable.